Which of the following are the important features of option contracts?
1. Buyers of option have limited liability.
2. Options have high degree of risk to option writers.
3. Options are exercisable only by buyers of option.
4. Buyers of option have all rights which are available to equity shareholders of the concerned companies.

Which of the following are the important features of option contracts?
1. Buyers of option have limited liability.
2. Options have high degree of risk to option writers.
3. Options are exercisable only by buyers of option.
4. Buyers of option have all rights which are available to equity shareholders of the concerned companies. Correct Answer 1, 2 and 3

Related Questions

Consider the following statements:
Assertion (A): Rights shares are given to equity shareholders in proportion to their share capital in the company.
Reason (R): Equity shareholders assume the greatest risk in company finance.
Now select your answer:
Jio is a big shot at reducing the cost of Internet access in India. The U.S., despite being the richest country in the world, lags far behind in terms of cost and penetration of Internet access. Cheap access to the Internet is an important step in bridging the access gap – access to good education, good healthcare, etc. But the market reaction to Jio is similar to the U.S. markets reaction to firms announcing their intention to diversify. (A)The final group of losers is the current shareholders of RIL. On announcement of Jio, the stock price of RIL fell. (B) It shows that the markets short-term reaction is usually proven correct in the long-run. (C) On losing end, the first groups of losers are the shareholders of other telecom companies. (D)The large amount of revenue the Government of India gets from auctioning off the nations natural resources is not necessarily a good thing because the Government does not have a stellar track record when it comes to spending the money. A large fraction of Government spending is wasted. (E) The second loser is the Government of India. The big money the Indian Government was raking in selling cellular bandwidth was actually coming from the pockets of the cellular consumers. (F)The first obvious winners of this scheme are customers. (G) The second winner is Mr. Ambani; he can potentially make a lasting impact as the man who brought Internet to millions of Indians. Question: Which of the following supports the decision of other companies opposing Reliance JIO Scheme?
In the question below, are given a statement followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the following suggested courses of actions logically follow(s) for pursuing. Statement: Indian Finance Minister Arun Jaitley said on Monday that the government is ready to ensure credit is available to non-banking financial companies (NBFCs), just a day after the market regulator and the central bank sought to calm skittish investors. Jaitley's assurances followed panic selling in the equity market on Friday that pushed the benchmark Nifty Index more than three percent lower in less than 30 minutes. It later recovered to end the day down 0.81 percent.  Courses of action: I. The sell-off was sparked by news that a large fund manager sold short-term bonds issued by Indian NBFC Dewan Housing Finance Corp at a sharp discount, raising fears of wider liquidity problem among NBFCs.  II. Indian equity markets have hit record highs this year despite sell-offs in domestic bonds and weakness in the rupee that has made it Asia's worst-performing currency this year.  III. A sell-off in equity markets, which have been one of the few bright spots in the economy, could further dent Modi's popularity among some of the small business and trading community, a core base of BJP supporters, who were already stung by two of his largest reform moves - demonetization and a nationwide Goods and Services Tax (GST).