Which One of the Following Statements Related to Options Is

question 43

Multiple Choice

Which one of the following statements related to options is correct?

• A) American stock options can be exercised but not resold.
• B) A European call is either equal to or less valuable than a comparable American call.
• C) European puts can be resold but can never be exercised.
• D) European options can be exercised on any dividend payment date.
• E) American options are valued using the Black-Scholes option pricing model.

---

Definitions:

Preferred Time

A designated or chosen period that is seen as most suitable or desirable for a specific purpose or activity.