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Sample_test_questions_Ch_20_and_21 - Sample Test Questions...

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1 Sample Test Questions Chapters 20 and 21 1. An option that can be exercised any time before expiration date is called: A) an European option B) an American option C) a call option D) a put option Answer: B 2. Ignoring the premium paid or received for the option, the figure below depicts the position diagram of: Value of Option Price of the Stock 0 Strike Price Strike Price 3. The buyer of a call option has the choice to exercise, but the writer of the call option has:
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