A Primary Difference Between Stock Options and Stock Index Options

question 12

Multiple Choice

A primary difference between stock options and stock index options is:

• A)stock index options tend to be more highly speculative.
• B)stock index options are ALWAYS settled ONLY for cash.
• C)there is rarely a premium on stock index options.
• D)None of the above

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Definitions:

Supreme Court

The highest judicial court in a country or state, which has the ultimate authority in interpreting the law and constitution.

Lower Court

A court of law that is lower in the hierarchy than an appellate court and typically is the first level at which legal cases are heard.

Writ of Certiorari

A writ from a higher court asking a lower court to send it the record of a case for review. The United States Supreme Court uses certiorari to review most of the cases it decides to hear.

U.S. Courts of Appeals

Intermediate appellate courts in the federal court system that review decisions of federal district courts, regulatory commissions, and other federal courts.