info@jobexams.pk

MCQ Detailed View

Explore the question in detail with explanation, related questions, and community discussions.

1 FINANCE MCQS

The pre-specified price at which an underlying asset can be bought or sold is called what?

  • Maturity price
  • Strike price
  • Exercise price
  • Both B and C
Correct Answer: D. Both B and C

Detailed Explanation

In options trading, the pre-determined price at which the holder can buy (call option) or sell (put option) the underlying asset is known as the strike price or the exercise price. Both terms are used interchangeably in finance. The maturity price refers to the value of an asset at expiration, which is different. Since the correct terminology includes both strike price and exercise price, the correct option is Both B and C.

Discussion

Thank you for your comment! Our admin will review it soon.
No comments yet. Be the first to comment!

Leave a Comment