An Exchange-Traded Option Contract Is

question 17

Multiple Choice

An exchange-traded option contract is:

• A)a method by which companies can raise additional equity financing
• B)a perpetual contract, like a share
• C)the right, but not the obligation, to settle the contract
• D)a derivative contract that can be acquired for free
• E)a derivative contract that is traded OTC.

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Definitions:

Local Currency

The currency that is legally accepted in a particular country or jurisdiction, used for the settlement of financial transactions within its borders.

S&P 500

A U.S. stock market index reflecting the market value of 500 major companies with common stock on the NYSE or NASDAQ.

Correlation

A statistical measure that describes the degree to which two variables move in relation to each other.

Standard Deviation

A statistical measure that represents the dispersion or variability of a data set or investment returns around the mean.