The pre-specified price at which the underlying asset is bought and sold is called as ___________?
Correct answer: D. both B and C
- A. maturity price
- B. strike price
- C. exercise price
- D. both B and C
Explanation
Strike price and exercise price are two names for the pre-specified price at which the option’s underlying asset may be bought or sold. Therefore both options B and C are correct.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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