Which of the Following Statements Is Most Correct

question 14

Multiple Choice

Which of the following statements is most correct?

• A) If the underlying asset does not pay a dividend, it does not make sense to exercise a call option prior to its expiration date.
• B) Call options generally sell at a price less than their exercise value.
• C) If a stock becomes riskier (more volatile), call options on the stock are likely to decline in value.
• D) Answers b and c are correct.
• E) None of the answers above is correct.

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Definitions:

Online Communities

Groups of people who interact with each other via the Internet, sharing common interests, goals, or characteristics, often within forums, social networks, or other digital platforms.

Successful

The achievement of set goals or objectives, often marked by a sense of accomplishment and recognition.

Social Network

A platform or structure made up of individuals or organizations that are interconnected through various forms of relationships, such as friendships, kinship, common interests, or economic exchanges.

Exchanges

Transactions or interactions between parties where goods, services, information, or money are traded, foundational to market activity and social relations.