Exchange-Traded Options Over Shares

question 31

Multiple Choice

Exchange-traded options over shares:

• A)are issued by the underlying company
• B)are issued by the exchange
• C)are issued by a financial institution
• D)are created when a bid matches an offer.
• E)None of these are correct.

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Definitions:

Buyer

An individual or organization that purchases goods or services from a seller for money or its equivalent.

Consumer Surplus

The discrepancy between what consumers anticipate paying for a good or service and the actual cost they bear.

International Trade

The exchange of goods and services between countries, which can increase market competition and lead to better product diversity and lower prices.

World Price

The global market price of a good or service when it is traded internationally.