A call option is:
A. an option where all rights are granted to the seller of the option.
B. an option giving the seller the right to sell a given quantity of an asset at a specific price on or before a specified date.
C. any option written more than sixty days into the future.
D. an option giving the holder the right to buy a given quantity of an asset at a specific price on or before a specified date.
Answer: D
You might also like to view...
Which of the following statements is true?
A) Under monopoly, the seller sets the price of its good below marginal costs. B) Under perfect competition, sellers set the price of their goods below marginal costs. C) Under monopoly, prospective buyers may not be able to buy a good even if they have a willingness to pay above marginal costs. D) Under perfect competition, prospective buyers may not be able to buy a good even if they have a willingness to pay above marginal costs.
The figure above shows Ronald's budget line. He has a weekly income of $20 and he spends it on hot dogs and hamburgers. The relative price of a hamburger is ________
A) 1/2 hot dog B) 5 hot dogs C) $20 D) 2 hot dogs
Urban Outfitters wants to raise $25 million to finance the construction of a new store, and the company wishes to raise the funds through direct finance. Which of the following methods could it use?
A) It could issue $25 million in stock. B) It could borrow $25 million from a bank. C) It could sell $25 million in bonds. D) It could choose either A or C.
________ in the expected future domestic exchange rate causes the demand for domestic assets to decrease and the domestic currency to ________, everything else held constant
A) An increase; appreciate B) An increase; depreciate C) A decrease; appreciate D) A decrease; depreciate