An options contract:Question 2Select one:a.is another name for a forward contract.b.gives the right to buy or sell an underlying asset at a predetermined price by a specified time.c.may be written for debt securities but not equities.d.may be written for equities but not debt securities.

Options are contracts that give the purchasers the_______a.option to buy or sell an underlying assetb.the obligation to buy or sell an underlying assetc.the right to hold an underlying assetd.the right to switch payment streams.

A is a type of option that permits the owner to sell an asset at a later time.a.Forward optionb.The put optionc.A future agreementd.Call option

Which of the following statement describes an option contract and the major distinction between a call and a put option?Group of answer choicesAn option is defined as the right, but not the obligation, to buy or to sell a specified amount of a given stock, commodity, currency, index or debt, at a specified price (the strike price) for a specified period of time.A put option contract gives a buyer the right not the obligation to sell an underlying security at certain price specified in the put option contract.All of the given answers.A call option contract gives a buyer the right not the obligation to purchase an underlying security at certain price specified in the call option contract.

In option markets the price specified in the option contracts for calls and puts is called the:Question 2Select one:a.market price.b.option price.c.strike price.d.expected value.

Which of the following is an example of a forward contract?*1 pointa. Buying a stock optionb. Purchasing a government bondc. Selling a currency at a future dated. Investing in a real estate property