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The holder of an option: Select one: a. makes a down payment called a premium which acts as a credit for adverse price movements. b.

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The holder of an option: Select one: a. makes a down payment called a premium which acts as a credit for adverse price movements. b. pays a premium which constitutes a known limited loss. O c.pays a premium that is refunded if the option holder exercises. O d. must put up a maintenance margin in case the market moves adversely

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