Which of the following statements is CORRECT?
A. Put options give investors the right to buy a stock at a certain exercise price before a specified date.
B. Call options give investors the right to sell a stock at a certain exercise price before a specified date.
C. Options typically sell for less than their exercise value.
D. LEAPS are very short-term options that have begun trading on the exchanges in recent years.
E. Option holders are not entitled to receive dividends unless they choose to exercise their option.
Answer: E
You might also like to view...
There are people who have similar income and education levels and often share tastes in clothing, decorating styles, and leisure activities
These people also share many political and religious beliefs as well as ideas regarding valued activities and goals. These people could all be categorized as being in the same ________. A) family life cycle B) social class C) regional group D) operant conditioning set E) microculture
Depending on the degree of certainty about the states of nature, every decision-making situation can be classified into ______ categories.
a. three b. four c. five d. six
Which of the following items would not appear in a statement of revenues, expenditures, and changes in fund balances prepared for a governmental fund?
A. Revenues from property taxes. B. Depreciation expense. C. Expenditures for employee salaries. D. Interfund transfers in.
Earnings on your investments should be reinvested in the stocks that produced the earnings or in other common stocks.
Answer the following statement true (T) or false (F)