BADM 710 FINAL EXAM - (TERMINOLOGY) QUESTIONS WITH EXPLANATIONS OF ANSWERS | LATEST UPATE

BADM 710 FINAL EXAM - (TERMINOLOGY) QUESTIONS WITH EXPLANATIONS OF ANSWERS | LATEST UPATE
Question: A European option may be exercised anytime
up to and including the expiration date. True or False?
Correct answer: False (A European option may be
exercised only on the expiration date.)
Question: The act of buying or selling the underlying
asset via the option contract is called _______________
the option.
Correct answer: Exercising
Question: A financial contract that provides its owner
with the right, but not the obligation, to buy or sell a
specified asset at an agreed-upon price on or before a
given future date is called a(n) _____ contract.
Correct answer: Option

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