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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
- Which option gives the right to buy an asset any time prior or to maturity? *A. European CallB. American PutC. American CallD. European PutWhich of the following gives the holder the right to buy the asset at a specified strike price? OA. A future contract OB. A put OC. An ETF OD. A stock OE. A callWhich of the following gives the holder the right to sell the asset at a specified strike price? OA. A stock OB. A put OC. An ETF OD. A future contract OE. A call
- Question 3 Which type of financial derivative gives the holder the right to buy an underlying asset at a specified price before a predetermined expiration date? A) Swap B) Forward contract C) Call option D) Put optionWhich of the following describes a short call option? O The obligation to buy an asset for a certain price The right to sell an asset for a certain price O The right to buy an asset for a certain price The obligation to sell an asset for a certain priceA 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.
- Suppose that W is a real-valued Wiener martingale. Let there be one risk-free asset B(t) = exp(rt) and one risky asset dS(t) = µS(t)dt +oS(t)dW(t), S(0) > 0, where r, u E R and o > 0 are constants.Which of the following describes a short put option? The obligation to sell an asset for a certain price The obligation to buy an asset for a certain price O The right to sell an asset for a certain price The right to buy an asset for a certain priceWhich 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.
- which one is correct please confirm? Q4: Options are contracts that give the purchasers the option to buy or sell an underlying asset the obligation to buy or sell an underlying asset. the right to hold an underlying asset. the right to switch payment streams.A swap contract Select one: A. relates to the trading of an asset owned by one company for another owned by a second company. B. is an arrangement between two or more parties to exchange future cash flows. C. can be used to increase or decrease the ratio of fixed and variable interest costs in its cost structure. D. Both B and C are true.A 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.