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:

Technology Transfer

The process of moving skills, knowledge, technologies, methods of manufacturing, samples of manufacturing, and facilities among governments or universities and other institutions to ensure that scientific and technological developments are accessible to a wider range of users.

Cost Leadership

A strategy businesses use to become the lowest-cost producer in their industry to gain a competitive advantage.

Porter's Generic

Strategies developed by Michael E. Porter that outline three potential strategies for achieving competitive advantage: cost leadership, differentiation, and focus.

Brand Name

The distinctive title that identifies a product or company, differentiating it from competitors in the marketplace.