Which of the Following Statements Is Correct About Cash-Or-Nothing Options

question 18

Multiple Choice

Which of the following statements is correct about cash-or-nothing options

• A)they are subject to no credit risk
• B)they must be priced by the binomial model
• C)they have lower upside gains and lower downside losses than ordinary options
• D)they are equivalent to short positions in asset-or-nothing options
• E)none of the above

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Definitions:

Ethnic Conflicts

Conflicts between different ethnic groups, often arising from issues of discrimination, cultural differences, or historical grievances.

Iraqi Military

The armed forces of Iraq, which include the Army, Air Force, Navy, and other specialized units, responsible for the defense of the country.

Foreign Occupation

The control or governing of a foreign territory by military forces from another country.

Diplomacy

The practice of conducting negotiations and managing relationships between nations through dialogue and other peaceful means.