Which One of the Following Is Not an Ownership Right

question 128

Multiple Choice

Which one of the following is not an ownership right of a stockholder in a corporation?

• A) To vote in the election of directors
• B) To declare dividends on the common stock
• C) To share in assets upon liquidation
• D) To share in corporate earnings

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Definitions:

Call Premium

The amount by which the price of a call option exceeds its intrinsic value, reflecting the cost to purchase the option above its immediate exercise value.

Call Contract

An agreement that gives the option buyer the right, but not the obligation, to buy a specified quantity of an asset at a predetermined price within a certain time frame.

Put Contract

A financial contract giving the holder the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time.

Writer of a Call Option

The individual or entity that sells a call option and has the obligation to sell the underlying asset at the set strike price if the option is exercised.