A ____ grants the owner the right to purchase a specified financial instrument for a specified price within a specified period of time.Select one:a. sale of a futures contractb. purchase of a futures contractc. put optiond. call option

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

A(n) ____ is a standardized agreement to deliver or receive a specified amount of a specified financial instrument at a specified price and date.Select one:a. brokerage contractb. margin callc. financial futures contractd. option contract

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.

An option buyer:Group of answer choiceshas a greater insurance benefit than the purchaser of a futures contract.is purchasing a very risky instrument if they don't own the underlying asset as they are locked in to buying at expiration.carries the risk of unfavourable price movements.will generally incur a lower cost compared to a purchaser of a futures contract.

A ________ option is an option to purchase a specified number of shares on or before some future date at a specified price, whereas a _______ option is an option to sell a specified number of shares on or before some future date at a specified price. ______ are bought if the share is expected to rise.Question 1Select one:a.put; call; Putsb.call; put; Putsc.call; put; Callsd.put; call; Calls