Which of the Below Statements Is FALSE

question 34

Multiple Choice

Which of the below statements is FALSE?

• A) The S&P 500 Index Option contract is European and the underlying is the S&P 500.
• B) There are stock index options for components of the major broad-based stock market indexes, selected industries, and selected sectors.
• C) There are stock index options based on the exercise style but not based on the length of the expiration period.
• D) Stock index options are cash settlement contracts, which means that, if the option is exercised, the exchange-assigned option writer pays cash to the option buyer.

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Definitions:

Federal Grant

A sum of money given by the federal government to a state, organization, or individual for a specific purpose or project.

Expendable Trust Fund

A fund consisting of assets held in a trust that can be used up or expended, typically for designated purposes as per the trust's terms.

Modified Accrual Accounting

An accounting method that combines aspects of both accrual and cash accounting, recognizing revenues when they are earned and expenses when they are incurred or paid.