which one is correct please confirm? Q9: An option that gives the owner the right to buy a financial instrument at the exercise price within a specified period of time is a call option put option American option European option

which one is correct please confirm? Q9: An option that gives the owner the right to buy a financial instrument at the exercise price within a specified period of time is a call option put option American option European option

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter5: Financial Options

Section: Chapter Questions

Problem 2MC

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Question

which one is correct please confirm?

Q9:

An option that gives the owner the right to buy a financial instrument at the exercise price within a specified period of time is a

		call option
		put option
		American option
		European option

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which one is corect please confirm? Q8: An option that gives the owner the right to sell a financial instrument at the exercise price within a specified period of time is a put option call option swap premium
An options contract that allows you to exercise the option anytime during a given time period is known as ... a. An American option b. A Caribbean option c. An English option d. A European option
The European call option gives the option buyer the right to exercise the option: Select one: a. at any time up to the expiration date. O b. only on the expiration date. c. if the price of the underlying asset falls below the exercise price. O d. immediately after the payment of dividends.
Which of the following statements about European option contracts is true? Question 2Answer a. Typically American options are cheaper than otherwise similar European options due to the uncertainty regarding the date of exercise. b. The price of an option can be obtained by computing the true probabilities of each state of nature, working out the expected option payoff across those states and then discounting back to the present. c. A long call position and a short put position both involve buying the underlying and so are equivalent d. One can synthesise a long forward position in the underlying by being long a call and short a put
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which one is correct please confirm? Q15: An option that can only be exercised at maturity is called a(n swap stock option European option. American option
Select all that are true with respect to options discussed in this module: Group of answer choices Option “moneyness” is sometimes called the “intrinsic value” of the option. A European Option can be exercised any time up to and including the date of maturity, but American Option can be exercised only at the date of maturity. The option “writer” is essentially the original seller of the option. While the option owner has the right, but not the obligation, to exercise an option, the option writer is obligated to follow through on the other side of the transaction if the option owner chooses to exercise. The option premium (option “value”) is made up of the intrinsic value and “speculative” value or time value.
which one is correct please confirm? Q6: The price specified on an option that the holder can buy or sell the underlying asset is called the premium. call. strike price put
An option that gives the option buyer the right to sell the commodity or financial instrument specified in the contact at the exercise price is called: a. an American option. b. a call option. c. a put option. d. a European option.
The value of an option at expiration is its _______. a. time value b. strike price c. premium d. intrinsic value Please answer fast i give you upvote.
Which one of the following statements correctly describes your situation as the owner of an American call option? Multiple Choice You are obligated to buy at a set price at any time up to and including the expiration date. You have the right to sell at a set price at any time up to and including the expiration date. You have the right to buy at a set price only on the expiration date. You are obligated to sell at a set price if the option is exercised. You have the right to buy at a set price at any time up to and including the expiration date.