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If a Purchase Contract Allows a Buyer to Accept Less

Question 54

Multiple Choice

If a purchase contract allows a buyer to accept less than a specified maximum "take" each month, buying a _____ would allow the seller to resell the excess at a _____ price.


A) put option; profitable
B) put option; predictable
C) call option; predictable
D) call option; profitable

Correct Answer:

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