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A Cash-Settled Option Is Defined as an Option Which Does

Question 2

Multiple Choice

A cash-settled option is defined as an option which does which one of the following?


A) requires a cash deposit upon purchase
B) has a foreign currency as its underlying asset
C) has the U.S. dollar at its underlying asset
D) entails a cash payment to the holder upon exercise
E) offers the option to either deliver the underlying asset or a cash payment

Correct Answer:

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