Which of the Following Is False

question 27

Multiple Choice

Which of the following is false?

• A)Agriculture futures predate financial futures.
• B)Futures agreements confer rights but no obligations.
• C)Futures agreements confer rights and obligations.
• D)Options confer rights but no obligations.

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Definitions:

American Call

An option contract that gives the holder the right to buy a security at a set price, called the strike price, at any time up to the expiration date.

Put Option

A financial agreement that permits the holder to choose whether to sell a specific quantity of a principal asset at a fixed price during an established period, without any mandatory commitment.

Keebler, Inc.

An American cookie and former cracker manufacturer, known for its elfin characters and cookie varieties.

Common Stock

A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's profits or losses.