Which of the Following Statements Is True

question 36

Multiple Choice

Which of the following statements is true?

• A)American options are options on securities of U.S.corporations, and the options are traded on American exchanges.European options are options on securities of U.S.corporations, but the options are traded on European exchanges.
• B)American options are options on securities which are traded on American exchanges.European options, also traded on American exchanges, are options on European corporations.
• C)American options give the holder the right to the dividend payment.European options do not.
• D)American options may be exercised anytime up to expiration.European options may be exercised only at expiration.
• E)None of the above.

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Definitions:

Equity Modes

Different methods a company can use to enter and operate in foreign markets, typically involving significant ownership and long-term commitment, such as joint ventures or subsidiaries.

Large Investment

Substantial financial commitment in assets or projects expecting future returns.

Equity Modes

Various methods or approaches for a company to raise capital through the sale of shares in the business to investors.

Joint Ventures

Business arrangements where two or more parties agree to pool their resources for the purpose of accomplishing a specific task, project, or business activity.