Costs associated with the purchase of sizeable put options positions include each of the following EXCEPT:
A) the purchase price of the options.
B) the opportunity cost of buying the options rather than diversifying operations to reduce risk.
C) executive salaries of having corporate offices in more than one country.
D) none of the above

Question

Quizplus · Accepted Answer

None of the costs associated with having corporate offices in more than one country are relevant to the purchase of put options. The other options are relevant costs that must be considered when purchasing put options.

Costs Associated with the Purchase of Sizeable Put Options Positions