All of the Following Are True of Calls and Puts

question 96

Multiple Choice

All of the following are true of calls and puts EXCEPT

• A) the presence of options trading in the firm's stock could, by increasing trading activity, stabilize the firm's share price in the marketplace.
• B) options are not a source of funding to the corporation.
• C) the financial manager of a corporation has very little need to deal with options.
• D) options are issued by businesses.

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Definitions:

Sum Of Cubes

A special algebraic formula or identity that expresses the sum of two cubes in terms of a product of a binomial and a trinomial.

Polynomial

A mathematical expression consisting of variables and coefficients that involves only the operations of addition, subtraction, multiplication, and non-negative integer exponents.

Grouping

A method in algebra to simplify expressions or solve equations by combining or partitioning terms.

Perfect Square Trinomial

A perfect square trinomial is a quadratic expression that can be expressed as the square of a binomial, characterized by specific relationships among its coefficients.