Answer:The holder of a call or put option must exercise the right to sell or buy an asset.
Explanation:The holder of a right or put option has the right to exercise that power but it is not a mandatory right,he or she can decide not to exercise that power.
All other options are correct, a call or gives the holder the right to buy an asset at a certain date and at a specific price.
A put option gives the holder the right to sell an asset at a specific date and price.
The holder of a forward contract is obligated to buy or sell an asset.
Answer:
Explanation:
The coach of a college men’s soccer team records the resting heart rates of the 27 team members. You should not trust a confidence interval for the mean resting heart rate of all male students at this college based on these data because;
(a) with only 27 observations, the margin of error will be large.
(b) heart rates may not have a Normal distribution.
(c) the members of the soccer team can’t be considered a random sample of all students.
