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:

Translating

The process of converting financial statements from one currency into another, typically for consolidation purposes.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, providing an overview of a business or person's financial condition.

Functional Currency

The currency of the primary economic environment in which an entity operates, usually determining how financial statements are presented.

Presentation Currency

The currency in which a company's financial statements are reported, chosen by the company to suit its primary audience's needs.