Which of the Following Statements Is FALSE

question 30

Multiple Choice

Which of the following statements is FALSE?

• A)No arbitrage opportunities will exist until the underlying prices diverge by more than the amount of the transaction costs.
• B)Because you will generally pay a slightly lower price when you buy a security (the ask price)than you receive when you sell (the bid price)you will pay the bid-ask spread.
• C)The price of a security should equal the present value of its cash flows,up to the transaction costs of trading the security and the cash flows.
• D)In most markets,you must pay transactions costs to trade securities.

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Definitions:

Approach Motivation

Describes the drive toward positive stimuli or outcomes, typically associated with the desire to achieve a specific goal.

Recognition

The process through which an entity is identified or acknowledged for what it is based on certain characteristics or by comparison with known entities.

State Finals

The ultimate or final competition or exam at the state level in various contexts such as sports, academics, or other competitive fields.

Self-actualization

Fulfilling one's inherent capabilities and talents, perceived as an essential aspiration or imperative present in everybody.