Which of the Following Statements Is False

question 6

Multiple Choice

Which of the following statements is false?

• A) A call option will sell for a fraction of the cost of the stock.
• B) A futures contract can be written for a commodity (such as wheat),or for a currency.
• C) A futures contract gives the owner the right,but not the obligation,to buy or sell a commodity at a specified price on a given future date.
• D) The specified price at which an option gives the owner the right to buy a stock at is called the stick price.

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Definitions:

Innovative

Innovative refers to the introduction of new ideas, methods, or products that aim to improve efficiency, effectiveness, or competitive advantage.

High Barriers

Significant obstacles or challenges that prevent or hinder entry into a market or the successful completion of a task.

Low Buyer Power

A market condition where buyers have limited influence over prices or terms due to high supplier concentration or the lack of alternatives.

Low Supplier Power

Refers to a market condition where suppliers have little control over the pricing and terms of sales, giving buyers greater bargaining power.