Which of the following statements is false?
A. A call option will sell for a fraction of the cost of the stock.
B. A futures contract can be written for a commodity (such as wheat), or for a currency.
C. A futures contract gives the owner the right, but not the obligation, to buy or sell a commodity at a specified price on a given future date.
D. The specified price at which an option gives the owner the right to buy a stock at is called the stick price.
Answer: C
You might also like to view...
Members of the European Union decided to adopt a single currency by what year?
A) 2008 B) 2005 C) 1999 D) 1992
The MC = MR approach to profit maximization means that a firm should produce until
a. marginal revenue equals zero b. additional profit equals zero c. marginal cost becomes negative d. marginal revenue equals price e. price equals average total cost
An increase in aggregate demand is most likely to result in
a. inflation. b. recession. c. economic stagnation. d. a decrease in real GDP.
Marginal utility is the change in
a. total utility when an extra unit of output is produced. b. total utility when an extra unit of output is consumed. c. marginal utility when an extra unit of output is produced. d. average utility when an extra unit of output is consumed.