Which of the Following Statements About Put and Call Options

question 2

Multiple Choice

Which of the following statements about put and call options is false?

• A) They are a form of deferred equity financing by the firm.
• B) They provide the buyer with an opportunity to earn larger returns than simply buying or selling ordinary shares.
• C) They can be used to lock in a gain or prevent a loss on a shareholding.
• D) They are traded on organized exchanges.

---

Definitions:

Acetaminophen

A common analgesic and antipyretic medication used to relieve pain and fever, known also as paracetamol.

Rheumatoid Arthritis

A chronic autoimmune disorder characterized by inflammation of the joints, leading to pain, swelling, stiffness, and, in severe cases, deformity.

Social History

An assessment of an individual's lifestyle, habits, and social circumstances that can influence health and healthcare needs.

Antianxiety Medications

Drugs prescribed to alleviate symptoms of anxiety disorders and reduce stress.