Which of the Following Statements Is CORRECT

question 23

Multiple Choice

Which of the following statements is CORRECT?

• A) Put options give investors the right to buy a stock at a certain exercise price before a specified date.
• B) Call options give investors the right to sell a stock at a certain exercise price before a specified date.
• C) Options typically sell for less than their exercise value.
• D) LEAPS are very short-term options that have begun trading on the exchanges in recent years.
• E) Option holders are not entitled to receive dividends unless they choose to exercise their option.

---

Definitions:

Moral Sentiment

Feelings or emotions that guide or influence ethical behavior and moral judgments.

Fear

An emotional response to perceived threats or danger, serving as a survival mechanism but can also lead to anxiety or avoidance behaviors.

Moral Development

Refers to the process by which individuals acquire and understand the values, attitudes, and behaviors considered appropriate and ethical within their society or culture.

Lawrence Kohlberg

A psychologist best known for his theory of stages of moral development, which describes how individuals evolve in their understanding of morality.