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152
11.Which of the following describes a long position in an option?
A.A position where there is more than one year to maturity
B.A position where there is more than five years to maturity
C.A position where an option has been purchased
D.A position that has been held for a long time
A.A position where there is more than one year to maturity
B.A position where there is more than five years to maturity
C.A position where an option has been purchased
D.A position that has been held for a long time
Answer: C
A long position is a position where an option has been purchased. It can be contrasted with a short position which is a position where an option has been sold.
A long position is a position where an option has been purchased. It can be contrasted with a short position which is a position where an option has been sold.
Flashcard info:
Author: CoboCards-User
Main topic: Finance & Investment
Topic: Derivatives
Published: 27.10.2015