Which of the Following Statements Regarding Put Options Is Not

question 29

Multiple Choice

Which of the following statements regarding put options is not true?

• A) You buy a put option when you expect the stock's price to increase.
• B) You place an order for a put option in the same way you place an order for a call option.
• C) Put options have an expiration date.
• D) Put options allow an investor to lock in a minimum price.

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Definitions:

Cosmic Rays

High-energy particles, originating outside the solar system, that travel through space and strike the Earth's atmosphere.

Ultraviolet Rays

Invisible radiation with wavelengths shorter than visible light but longer than X-rays, capable of producing chemical reactions and causing harm to skin and eyes.

Visual Field

The entire area that can be seen when the eye is directed forward, including peripheral vision.

Retina

The light-sensitive layer of tissue at the back of the inner eye, which converts light images into neural signals sent to the brain.