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An Options Contract Gives the Owner the ________ but Not

question 36

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An options contract gives the owner the ________ but not the ________ to buy or sell an asset at a fixed price at some future date.

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Definitions:

Obligations

Duties or commitments that require an individual or organization to act in a certain manner, often legally binding.

Equivalent Replacement

The act or process of replacing an asset with another that performs the same function or yields the same output.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage rate.

Overdue

Refers to a payment or obligation that has not been met by its specified due date.

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