All of the Following Are True of Calls and Puts

question 19

Multiple Choice

All of the following are true of calls and puts EXCEPT

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

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Definitions:

Malfunctions

Failures or dysfunctions in a system, equipment, or part, often causing it to operate incorrectly or not at all.

Emissions

Pollutants released into the air from sources such as vehicles, factories, and power plants, often regulated to protect environmental and public health.

Testing

The process of examining and evaluating something to determine its condition, quality, or efficiency through various methods and techniques.

Misfire

An engine condition where a cylinder fails to ignite its fuel/air mixture properly, leading to performance issues.