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Which option gives the right to sell an asset at any time prior to or at maturity? *
A. European Put
B. American Put
C. American Call
D. European Call
Step by step
Solved in 2 steps
- A European call option can be exercised a. any time in the future b. only on the expiration date c. if the price of the underlying asset declines below the exerciase price d. immediately after dividends are paid e. none of these.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.An option that gives the option buyer the right to buy the commodity or financial instrument specified in the contact at the exercise price is called:* A. an American option B. a European option C. a call option D. a put option
- Which of the following best describes an option contract? a. It gives the holder the obligation to buy or sell an underlying asset at a prespecified price for a specified time period. b. It gives the holder the right, but not the obligation, to buy or sell an underlying asset at a prespecified price for an unspecified time period. c. It gives the holder the right, but not the obligation, to buy or sell an underlying asset at a prespecified price for a specified time period. d. It gives the holder the right, but not the obligation, to buy or sell an underlying asset at an unspecified price for an unspecified time period.The value of a European put option can be either directly or inversely to a. Time to expiry b. volatility of the underlyingA call option: Choose the right answer: a. is the right to buy at the strike price on or before a certain date. b. is the option to sell at the strike price on or before a certain date. c. requires the holder to buy the asset. d. requires the holder to sell the asset.
- a)analyze and discuss the following factors on a European call option: time to expiration, exercise price, interest rate, volatility, and dividends. b) identify, analyze, and discuss the following characteristics of a European put option: maximum value, intrinsic value, time value, lower bound, and payoff at expiration. c) analyze and discuss the following factors on a European put option: time to expiration, exercise price, interest rate, volatility, and dividends. d) discuss the relationship between American and European option prices. e) derive the put-call parity and discuss its implications. f) discuss the characteristics of a currency option.A contract requiring a specified future monetary payment at a specified future point in time in exchange for the delivery of a specific asset is called a: *A. nonconvertible option.B. hedge.C. long contract.D. swap.The seller (or the writer) of a call option: may have the obligation to sell the underlying asset at a strike price until an expiration date may have the obligation to buy the underlying asset at a strike price until an expiration date has the right to sell the underlying asset at a strike price until an expiration date has the right to buy the underlying asset at a strike price until an expiration date None of these answers are correct.
- i)identify, analyze and discuss the following characteristics of an American put option: maximum value, intrinsic value, time value, lower bound, and payoff at expiration. ii) analyze and discuss the following factors on an American put option: time to expiration, exercise price, interest rate, volatility, and dividends. iii) identify, analyze, and discuss the following characteristics of a European call option: maximum value, intrinsic value, time value, lower bound, and payoff at expiration. iv) analyze and discuss the following factors on a European call option: time to expiration, exercise price, interest rate,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 putQuestion 11 Complete the following: Purchasing a call option gives you A The right to buy an asset at the market price B The right to sell an asset at a specified price C The right to sell an asset at the market price D The right to buy an asset at a specified price