The Owner of a Call Option on a Futures Contract

question 14

True/False

The owner of a call option on a futures contract has the obligation to buy the futures contract at a predetermined strike price during a specified time period.

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Definitions:

Judicial System

The system of courts that interprets and applies the law in the name of the state or country, providing a mechanism for the resolution of disputes.

Gilded Age

A period in the late 19th century characterized by rapid economic growth, especially in the Northern and Western United States, coupled with vast wealth, much of which was concentrated in the hands of a few.

Communism

A political and economic ideology advocating for a classless society in which all property is publicly owned and each person works and is paid according to their abilities and needs.

Knights of Labor

A significant American labor organization in the late 19th century, advocating for the rights of workers, including shorter workdays and an end to child labor.