A Primary Difference Between Stock Options and Stock Index Options

question 49

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:

Welfare Banks

Financial institutions focused on providing services and support to individuals in need, though not a widely recognized term in traditional finance.

Credit Unions

Member-owned financial cooperatives that provide savings, credit, and other financial services to their members.

Check-Cashing Stores

Businesses that offer check cashing services and other financial transactions, often serving underbanked communities.

Means of Payment

Various methods through which debts can be paid, ranging from physical currency to electronic transfers of funds.