Which of the Following Statements Is CORRECT

question 9

Multiple Choice

Which of the following statements is CORRECT?

• A) Call options give investors the right to sell a stock at a certain strike price before a specified date.
• B) Options typically sell for less than their exercise value.
• C) LEAPS are very short-term options that were created relatively recently and now trade in the market.
• D) An option holder is not entitled to receive dividends unless he or she exercises their option before the stock goes ex dividend.
• E) Put options give investors the right to buy a stock at a certain strike price before a specified date.

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Definitions:

Amniotic Sac

A fluid-filled sac that surrounds and protects the embryo and fetus during pregnancy, providing a safe environment for development.

Drive-Reduction Theory

A theory of motivation that posits that humans are driven to reduce internal states of tension and return to a state of homeostasis.

Primary Drive

Basic, innate drives that motivate behavior necessary for survival, such as hunger, thirst, and the need for warmth.

Stimulus Motives

Drives or urges that are unlearned and lead organisms to pursue stimuli or activities that provide sensory satisfaction.