Which of the following statements is the least accurate?

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.

Solutions

Expert Solution

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.

jeff jeffy answered 1 year ago

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