1- The buyer of a call option has the right to buy from the writer of the option contract, securities at the ________.
2- A futures contract is "marked-to-market" weekly to reflect the current market price of the contract. This means that one or the other party has to make a cash payment to the exchange at the end of each week. True or false?
3- A financial institution that buys a put option:
Multiple Choice
is obligated to accept delivery of the underlying security at the contract price.
is exposed to unlimited losses and limited gains.
has the right to make delivery of the underlying security at the contract price if they wish.
has the right to accept delivery of the underlying security at the contract price if they wish
is obligated to make delivery of the underlying security at the contract price.-