Economics · Financial Markets
Match List I with List II regarding Hedging Concepts: List I (Hedging Concepts) A. European option B. Option premium C. In-the-money option D. American option List II (Description) I. Option contract exercised on any date up to maturity II. When the immediate exercise of an option yields positive value to its holder III. Option contract exercised only on the maturity date IV. It is paid by the buyer of the options upfront to the option seller Choose the correct answer from the options given below:
- 1A-I, B-IV, C-II, D-III
- 2A-I, B-II, C-III, D-IV
- 3A-III, B-IV, C-II, D-I✓
- 4A-I, B-II, C-IV, D-III
Correct answer
A-III, B-IV, C-II, D-I
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