Which of the Following Statements Is FALSE

question 50

Multiple Choice

Which of the following statements is FALSE?

• A)A call option gives the owner the right to buy the asset.
• B)A put option gives the owner the right to sell the asset.
• C)A financial option contract gives the writer the right (but not the obligation)to purchase or sell an asset at a fixed price at some future date.
• D)A stock option gives the holder the option to buy or sell a share of stock on or before a given date for a given price.

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Definitions:

Marginal Benefit

The increased enjoyment or advantage received from the consumption of one extra item of a good or service.

Economics Grade

A measurement or assessment of a student's understanding and proficiency in the subject of economics, typically given as part of an academic evaluation.

Marginal Benefit

The increased pleasure or advantage received from the consumption or creation of an additional unit of a good or service.

Marginal Benefit

The supplementary enjoyment or value derived by a person upon consuming an extra unit of a particular good or service.