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Which of the following statements regarding Derivatives is true?

  1. Which of the following statements regarding Derivatives is true?
  2. I.)   Selling a call option gives someone else the right to buy an asset from you at a fixed price.
  3. II.) Buying a put option gives you the right to sell an asset for a fixed price. 
  4. III.) Buying a call option gives you the right to buy an asset for a fixed price.   
  5. IV.) None of the above

4.00000 points  


  1. For a Premium, an American Put Option gives the holder the right, but not the obligation to, buy an asset at the Strike Price at any time prior to Option Maturity.

 True

 False

Top Answer

>III.) Buying a call option gives you the right to buy an asset for a fixed price.  >This is TRUE When you buy an put... View the full answer

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