Which of the Following Statements Is FALSE

question 53

Multiple Choice

Which of the following statements is FALSE?

• A)Options allow investors to speculate,or place a bet on the direction in which they believe the market is likely to move.
• B)Options where the strike price and the stock price are very far apart are referred to as deep in-the-money or deep out-of-the-money.
• C)Call options with strike prices above the current stock price are in-the-money,as are put options with strike prices below the current stock price.
• D)European options allow their holders to exercise the option only on the expiration date-holders cannot exercise before the expiration date.

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Definitions:

Legal Principle

A foundational rule or concept upon which laws are based, guiding the operations of legal systems.

Minority Groups

Communities or groups within a society that are smaller in number and often disadvantaged compared to the dominant or majority group.

Lack Of Power

The absence or insufficiency of control, authority, or influence over others or one’s circumstances.

Internalized Racism

The process by which individuals in marginalized racial groups absorb and accept racist attitudes and beliefs towards their own race, often as a result of societal influence.