Which One of the Following Statements Is Correct

question 64

Multiple Choice

Which one of the following statements is correct?

• A)Reduced Value index options are equal in size to one percent of the standard index option.
• B)The holder of a stock index put option is betting that the underlying index will increase in value.
• C)Most index options are traded on the New York Options Exchange.
• D)The contract size for a call option on the S&P 500 is 10 times the index.
• E)Some stock index options close in the morning while others close at the end of the trading day.

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Definitions:

Vested

A status where an employee has earned the right to keep benefits, often pertaining to retirement plans, regardless of employment status.

Pension Plan

A retirement plan that requires an employer to contribute to a pool of funds set aside for an employee's future benefit.

Original Beneficiary

The initial recipient designated to receive benefits or assets from a trust, will, or life insurance policy.

Plan Assets

Assets held by a retirement plan, including investments, cash, and property, used to generate benefits for participants.