Which of the Following Statements Is False

question 58

Multiple Choice

Which of the following statements is false?

• A) Option contracts are a zero sum game.
• B) If an in-the-money option is not exercised at expiration, you will lose money.
• C) It is possible for you to lose all of your investment in an option.
• D) One advantage to buying options on a stock rather than the stock itself is that it requires a smaller initial investment.
• E) As the price of a stock falls, the value of a put option on the stock also falls.

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Definitions:

Organizational Standards

Predetermined levels of excellence that an organization seeks to achieve in its operations, products, and services, typically through the implementation of rules, guidelines, and procedures.

Standards

Established rules, criteria, or measures against which products, services, and processes are evaluated to ensure quality, safety, and consistency.

Objectives

Clearly defined goals or outcomes that an individual, team, or organization aims to achieve within a specific timeframe.

Organizational Control

Mechanisms or systems used by an organization to regulate behavior, processes, or outcomes to achieve its goals.