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Which One of the Following Statements Correctly Describes Your Situation

Question 38

Multiple Choice

Which one of the following statements correctly describes your situation as the holder of a European call option?


A) You are obligated to buy if the option is exercised.
B) You have a right to sell.
C) You have a right to buy but only on the expiration date.
D) You are obligated to sell if the option is exercised.
E) You have a right to buy at any time before the option expires.

Correct Answer:

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