1. A Put-Buy is the selling the right to buy the underlying item from you at the strike price until the expiration date. Known as writing a call.

A. True

B. True

2. A Call Option is a right (not obligation) to purchase a stock at a predetermined price (exercise/strike price) before or on the date specified (maturity date).

A. True

B. False

3. Trade-in allowance is the current market value offered by the vendor to establish salvage value on the cash flow statement.

A. True

B. False