Which of the following statements is CORRECT?

A. Call options give investors the right to sell a stock at a certain strike price before a specified date.
B. Options typically sell for less than their exercise value.
C. LEAPS are very short-term options that were created relatively recently and now trade in the market.
D. An option holder is not entitled to receive dividends unless he or she exercises their option before the stock goes ex dividend.
E. Put options give investors the right to buy a stock at a certain strike price before a specified date.


Answer: D

Business

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