Question

What is the primary distinction between "Lock" and "Option" products?

a.

Lock products provide the right, but not the obligation to exercise the contract.

b.

Option products compel the contractual parties to the terms over the life of the contract.

c.

Lock products are traded on exchanges, while Option products are traded OTC.

d.

Option products provide the right, but not the obligation to exercise the contract.

Answer: (d).Option products provide the right, but not the obligation to exercise the contract. Explanation:Option products provide the buyer the right, but not the obligation to exercise the contract under the terms specified.

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Q. What is the primary distinction between "Lock" and "Option" products?

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