Which of the Following Statements About Put and Call Options

question 143

Multiple Choice

Which of the following statements about put and call options is false?

• A) They are a form of deferred equity financing by the firm.
• B) They are traded on organized exchanges.
• C) They provide the buyer with an opportunity to earn larger returns than simply buying or selling common stock.
• D) They can be used to lock in a gain or prevent a loss on a stock holding.

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