Which of the following is NOT correct about the key elements of options contracts? Select...
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Accounting
Which of the following is NOT correct about the key elements of options contracts? Select one: a. Options contracts include strike price, maturity date and the price of the underlying security. b. The options premium can be different for both European and American-type option. O c. The premium is the option price that locks the options buyer into the contract. O d. The strike price is the prevailing market price for the underlying security at the option expiration date. On the expiration date for a put option with strike price of $10.00, premium $1.50 and the current spot price of $8.00, the holder will: Select one: a. buy the shares in the market place. O b. let the option contract lapse. O c. exercise the option. d. make a profit of $1.50
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