Which of the Following Is False

question 78

Multiple Choice

Which of the following 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.

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Definitions:

Conditioned Response

A learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus through conditioning.

Sound of the Train

The auditory experience associated with a train moving along its tracks, often characterized by a rhythmic, rumbling noise or whistle.

Permanent Behavior Change

A lasting alteration in behavior that is the result of learning, experience, or adjustments in one's environment.

Learning

The process of acquiring new understanding, knowledge, behaviors, skills, values, or preferences, often resulting from study, instruction, or experience.