Statements regarding derivatives is true

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Reference no: EM132052787

1. Which of the following statements regarding Derivatives is true?

I) Selling a call option gives someone else the right to buy an asset from you at a fixed price.

II) Buying a put option gives you the right to sell an asset for a fixed price.

III) Buying a call option gives you the right to buy an asset for a fixed price.

IV) None of the above

2. You own a convertible bond with a face value of $1,000 and a market value of $1,034. The bond can be converted into 32 shares of stock. What is the conversion price?

$31.25

$34.63

$31.43

$32.31

$34.33

Reference no: EM132052787

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