Which of the Following Is NOT True About Call and Put

question 16

Multiple Choice

Which of the following is NOT true about call and put options:

• A) An American option can be exercised at any time during its life
• B) A European option can only be exercised only on the maturity date
• C) Investors must pay an upfront price (the option premium) for an option contract
• D) The price of a call option increases as the strike price increases

Analyze the consequences of actions that have greater costs than benefits on society's welfare.

Identify when an economic activity should or should not be undertaken based on its costs and benefits.

Distinguish between different standards (e.g., majority vote, economic efficiency) used to evaluate economic activities.

Understand the basic principles of supply and demand and how they relate to market equilibrium.

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