Which of the Following Is NOT True

question 20

Multiple Choice

Which of the following is NOT true

• A) A call option gives the holder the right to buy an asset by a certain date for a certain price
• B) A put option gives the holder the right to sell an asset by a certain date for a certain price
• C) The holder of a call or put option must exercise the right to sell or buy an asset
• D) The holder of a forward contract is obligated to buy or sell an asset

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Definitions:

Eps Numbers

Earnings per share; a financial metric that divides a company's net profit by the number of outstanding shares, indicating the company's profitability on a per-share basis.

Income From Continuing Operations

Net income from the regular, ongoing activities of a business, excluding any effects of discontinued operations, extraordinary items, or other irregularities.

Income Statement

An account detailing the financial outcomes such as revenue, costs, and profit of a business for a given period.

Accounting Estimates

Refers to approximations made in the financial statements when a precise value cannot be determined, often used in reporting expenses or valuations.