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174 multiple choice questions

174 multiple choice questions - Final(Fall 2008...

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Final (Fall 2008) Multiple-Choice {Circle letter of BEST response.} 1. The price that the writer of a put option receives to sell the option is called the: a) premium. 2. An American call option allows the buyer to: b a) sell the underlying asset at the exercise price on or before the expiration date. b) buy the underlying asset at the exercise price on or before the expiration date. c) sell the option in the open market prior to expiration. d) Both (a) and (c). e) Both (b) and (c). 3. To adjust for stock splits: 4. The current market price of a share of Disney stock is $30. If a call option on this stock has a strike price of $35, the call: c) can be exercised profitably.
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