Why is the holder of an option not required to post margin under the Option Clearing Corporation rules?
A. The credit worthiness of the holder covers all potential losses.
B. The holder must post securities instead of margin.
C. The seller pays all costs.
D. Once an option is purchased, no further money is at risk.
Answer: D. Once an option is purchased, no further money is at risk.
Business
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The affordable method involves setting promotion budgets to match competitors' outlays
Indicate whether the statement is true or false
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