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:

Underwriters

Professionals or companies that assess and take on financial risk, as in the issuance of insurance policies or investment securities.

Registration Document

An official document filed with a regulatory body to declare the particulars of a new issue of securities, a new company, or a vehicle.

Private Placement Exemption

Private Placement Exemption refers to a securities offering exempt from registration with regulatory bodies, allowing companies to sell shares directly to qualified investors without a public offering.

SEC

The Securities and Exchange Commission, a federal agency responsible for regulating the securities industry, enforcing federal securities laws, and ensuring securities market integrity.