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Commerce · Q324

Miscellaneous in Commerce

Graduate and Post Graduate · Commerce · question 324

Q324

Which of the following are the important features of option contracts? (I) Buyers of option have limited liability. (II) Options have high degree of risk to option-writers. (III) Options are exercisable only by buyers of option. (IV) Buyers of option have all rights which are available to equity shareholders of the concerned companies.

A.
(I), (II), (III)
Answer
B.
(I), (II), (III), (IV)
C.
(I), (II), (IV)
D.
(I), (III), (IV)

Answer: Option A

Solution

Answer: Option A
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