Options are not an actual security. True or False? True False

Options are not an actual security. True or False?

True

False

Expert Solution

True

Options are based on an underlying security. The prices of options depend upon the value of the underlying assets. So they are not the actual security but give the owner the right to buy or sell the actual security. For example: A call options gives the holder the right to buy a security at a price defined in the option.

jeff jeffy answered 2 years ago

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