Which of the Below Statements Is FALSE

question 32

Multiple Choice

Which of the below statements is FALSE?

• A) Complex OTC options are called exotic options.
• B) An alternative option, also called an either-or option, has a payoff which is the best independent payoff of two distinct assets.
• C) An outperformance option is an option whose payoff is based on the relative payoff of two assets at the expiration date.
• D) None of these

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Definitions:

Shareholders

Individuals or entities that own shares in a corporation, giving them ownership interests and rights within the company.

Sarbanes-Oxley

A federal law that set new or expanded requirements for all U.S. public company boards, management, and public accounting firms.

Public Company

A corporation whose shares are traded openly on stock exchanges or markets, making its ownership public.

Small Corporations

Refers to corporations with a limited number of shareholders and reduced regulatory requirements.