Which of the Following Is NOT True Regarding Options and Options

question 10

Multiple Choice

Which of the following is NOT true regarding options and options on futures contracts?

• A)The purchaser of both an option and an option on futures must pay a premium.
• B)Options are available on stock indexes, but not on stock index futures.
• C)The fulfillment of options on futures contracts is regulated by exchanges, while the fulfillment of options is not.
• D)Options are available on stock indexes, but not on stock index futures AND t he fulfillment of options on futures contracts is regulated by exchanges, while the fulfillment of options is not.

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Definitions:

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and profits or losses.

Convertible Bond

A convertible bond is a type of bond that the holder can convert into a specified number of shares of common stock in the issuing company, usually at certain times during its life.

Common Stock

A type of equity security that represents ownership in a corporation and entitles the holder to vote at shareholder meetings and receive dividends.

Straight-Line Method

A depreciation method that allocates an equal amount of depreciation each year over the useful life of an asset.