An Options Contract Gives the Owner the ________ but Not

question 36

Multiple Choice

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

• A) obligation, right
• B) right, option
• C) right, obligation
• D) option, right

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Definitions:

Celler-Kefauver Act

A United States antitrust law passed in 1950, designed to prevent anti-competitive mergers and acquisitions that could create monopolies or reduce competition.

Clayton Act

Passed by Congress in 1914 to strengthen the Sherman Act and clarify the rule of reason, the act outlawed specific monopolistic behaviors such as tying contracts, price discrimination, and unlimited mergers.

HHI

Herfindahl-Hirschman Index (HHI) is a measure of market concentration, calculated by squaring the market share of each firm competing in the market and then summing the resulting numbers.

Relevant Market

The specific subset of the broader market where competition occurs, determined by factors like product substitutability and geographic boundaries.