Which of the Following Statements Is CORRECT

question 2

Multiple Choice

Which of the following statements is CORRECT?

• A)Put options give investors the right to buy a stock at a certain strike price before a specified date.
• B)Call options give investors the right to sell a stock at a certain strike price before a specified date.
• C)Options typically sell for less than their exercise value.
• D)LEAPS are very short-term options that were created relatively recently and now trade in the market.
• E)An option holder is not entitled to receive dividends unless he or she exercises their option before the stock goes ex dividend.

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Definitions:

Cognitive Abilities

Sources of individual differences in performance on cognitive tasks, including factors such as intelligence, memory capacities, attentional focus, knowledge base, strategies, and processing speed.

Plato

An ancient Greek philosopher who made foundational contributions to Western thought, particularly in areas of ethics, politics, and metaphysics.

Expectations

Refers to the anticipations or beliefs regarding future events or outcomes, can significantly influence attitudes and decisions.

Rats

Commonly used as model organisms in psychological and neurological research due to their similarity to humans in physiology, behavior, and genetics.