Which One of the Following Guarantees That the Terms of an Exchange-Listed

question 37

Multiple Choice

Which one of the following guarantees that the terms of an exchange-listed option contract are fulfilled when an option is exercised?

• A)Securities and Exchange Commission
• B)Federal Reserve
• C)New York Options Exchange
• D)Options Clearing Corporation
• E)Securities Investors Protection Corporation

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Definitions:

Dividend Income

Income received by shareholders from a company's earnings, distributed proportionally among shares.

Holders of Record

Registered owners of securities at a specific time who are entitled to receive dividends or distributions announced by a company.

Dividend Payable

A liability recorded on a company's balance sheet for the dividends declared by the board of directors that have not yet been paid out to shareholders.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, although the overall value of the company doesn't change.