Option sellers can have an) of exercising their options. Options buyers can have an) ___of exercising their options. A obligation; obligation B. right right C. obligation; right D.right: obligation QUESTION 2 The purpose of a margin account for a futures contract is to: A. hold interest payments until expiration. B. allow futures traders to have more than one contract at once. C. reduce the default risk on the futures contract. D. guarantee a minimum margin of profit for the contract holder. QUESTION 3 B. Which of the following statements is NOT correct? A. If a call option is out-of-the-money, it means the strike price is higher than the market price of the underlying asset. When a call option is at-the-money, it means buyers are break even in the call option contract (i.e., zero gain or loss for the call option buyer). c. Hedging an asset with futures contract on a similar, but not identical, asset is called cross-hedging. An option that may be exercised at any time up to its expiration date is called American option. D