When a six-month option is purchased

A. The price must be paid in full
B. Up to 25% of the option price can be borrowed using a margin account
C. Up to 50% of the option price can be borrowed using a margin account
D. Up to 75% of the option price can be borrowed using a margin account

A

Only options lasting more than 9 months can be bought on margin.

Business

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a. true b. false

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________ is high in an industry when alternative products that offer attractive savings are available

A) The power of suppliers B) The threat of substitutes C) Network effects D) The switching cost

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