With a call option, the option holder:
A. can buy or sell, it is their option.
B. can buy the asset but only after the date specified.
C. has the right to buy the asset.
D. has the right to sell the asset.
Answer: C
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If planned aggregate expenditure is below potential GDP and planned aggregate expenditure equals GDP, then
A) actual inventory investment will be less than planned inventory investment. B) the economy is at full employment. C) the economy is in a recession. D) actual inventory investment will be greater than planned inventory investment.
When poverty is defined by an relative real income level, what will happen to the poverty rate if the distribution of income is not perfectly equal?
A) The poverty rate will increase forever. B) The poverty rate will eventually be zero. C) The poverty rate will always remain constant. D) The poverty rate will change, but always exist.
Actual investment is the:
A. spending households engage in based on forecasted budget. B. amount that firms actually allocate to inventory accumulation. C. investment a firm makes into stocks and bonds in order to generate profit. D. amount that firms really allocated to new capital resources and inventory accumulation.
Which of the following is an example of U.S. foreign direct investment and by itself increases U.S. net capital outflow?
a. A Swedish bank buys a bond issued by the U.S. government. b. A German company builds a car factory in the U.S. c. A U.S. mutual fund purchases stock issued by a corporation in Bolivia. d. A U.S. grocery chain builds and operates a new warehouse in Honduras.