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:

Credit Balance

The amount of money in a financial account that the account holder can claim, representing a surplus of payments over charges.

Pegboard System

An organizational tool consisting of a board with holes into which pegs are placed to hang tools, keys, or other items, often used in retail or workshop settings.

Daily Entries

Regular, often daily, written records or notations of events, transactions, observations or personal reflections.

Financial Record

A financial record is documentation of financial transactions and positions of an individual or organization, essential for financial management and accountability.