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Commerce · Q685

Banking and Financial Institutions

Graduate and Post Graduate · Commerce · question 685

Q685

Which of the following are the important features of option contracts? 1. Buyers of option have limited liability. 2. Options have high degree of risk to option writers. 3. Options are exercisable only by buyers of option. 4. Buyers of option have all rights which are available to equity shareholders of the concerned companies.

A.
1, 2 and 3
Answer
B.
1, 2, 3 and 4
C.
1, 2 and 4
D.
1, 3 and 4

Answer: Option A

Solution

Answer: Option A
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