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Commerce · Q620

Financial Management

Graduate and Post Graduate · Commerce · question 620

Q620

Long-term equity anticipation security is usually classified as

A.
short-term options
B.
long-term options
Answer
C.
short money options
D.
yearly call

Answer: Option B

Solution

Answer: Option B
Solution:
Long-term equity anticipation security is usually classified as long-term options. Long-term equity anticipation securities (LEAPS) are publicly traded options contracts with expiration dates that are longer than one year.