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    Principles of Money Banking
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    Exam 9: Demystifying Derivatives
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    To the Options Buyer, the Premium Paid for the Contract
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To the Options Buyer, the Premium Paid for the Contract

Question 15

Question 15

Multiple Choice

To the options buyer, the premium paid for the contract represents the


A) maximum return.
B) largest potential loss.
C) yield.
D) transaction cost.

Correct Answer:

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