All of the Following Are True of Calls and Puts

question 15

Multiple Choice

All of the following are true of calls and puts EXCEPT

• A) options are issued by businesses.
• B) the financial manager of a company has very little need to deal with options.
• C) the presence of options trading in the firm's stock could, by increasing trading activity, stabilise the firm's share price in the marketplace.
• D) options are not a source of funding to the corporation.

---

Definitions:

Sequential Function Chart

A graphical programming language used for programmable logic controllers (PLCs) to describe the sequence of operations in an industrial process.

Function Block

Rectangular block with inputs entering from the left and outputs exiting on the right.

Structure Text

A high-level programming language used in PLC and other control systems, designed for complex algorithm implementation.