In: Finance
Which of the following statements is the least accurate?
a. | Common types of contingent claim derivatives include options and modified versions of swaps, forward contracts and futures contracts. | |
b. | An option that gives the right to buy is referred to as a put; an option that gives the right to sell is referred to as a call. | |
c. | Asset-backed securities are examples of contingent claims. |
option B is least accurate
all of the other statements given are absolutely true.
in option B.
the put option is the right to sell the underlying stock at A predetermined price until a fixed period of time. In call option buyer has the right to buy the shares at a strike price before or on the date of expiry date.