The ________ Side of an Options Contract Has the Option

question 25

Multiple Choice

The ________ side of an options contract has the option to exercise, while the ________ side has an obligation to fulfill the contract.

• A) long, long
• B) short, long
• C) long, short
• D) short, short

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Definitions:

Opportunity Costs

The potential benefits or returns that are foregone by choosing one alternative over another.

Trade Price

The price at which goods or services are traded between companies, often lower than retail price.

International Trade

The exchange of goods, services, and capital between countries or territories, influenced by comparative advantage, tariffs, and trade agreements.

Better Off

Refers to a situation where an individual's or group's economic situation or welfare has improved.