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Number 5. What is the difference between an American option and a European option? Does the holder of an option have to exercise it? Explain
Number 5.
- What is the difference between an American option and a European option?
- Does the holder of an option have to exercise it?
- Explain why the following statement is true or false.
A put seller is at risk of losing money if the underlying price increases.
- Explain why the following statement is true or false.
A call seller is obliged to buy the underlying share at the exercise price.
- What is the maximum profit potential if you long a call or put option?
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Project Financing Analyzing And Structuring Projects
Authors: Frank J Fabozzi, Carmel De Nahlik
1st Edition
9811232393, 9789811232398
