Implied Conditions Are Not Understood to Be Part of an Agreement

question 41

True/False

Implied conditions are not understood to be part of an agreement but are found in the express language of the agreement.

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Definitions:

Exercise Price

The specified price at which the holder of an option can buy or sell the underlying asset.

Stock Price

The cost of purchasing a share of a company's stock, determined by supply and demand in the market.

Call Option

A financial contract that gives the buyer the right, but not the obligation, to purchase an asset at a specified price within a certain time frame.

Market Price

The market value at which a service or asset is currently traded.