Concerning Index Options,which of the Following Statements Is FALSE

question 57

Multiple Choice

Concerning index options,which of the following statements is FALSE?

• A)Index options appeal to speculators due to the leverage they offer.
• B)Investors can write index options.
• C)If exercised the holder of an index option receives the strike price.
• D)Index options are settled in cash.

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Definitions:

Net Exports

represents the difference between a country's total value of exports and its total value of imports, indicating the balance of trade.

Exports

Merchandise or services dispatched to a different country for the sake of trade or sales.

Imports

Goods and services bought by a country from other countries.

NAFTA

The North American Free Trade Agreement (NAFTA) was a treaty among the United States, Canada, and Mexico that eliminated most tariffs and trade barriers between the countries, in effect from 1994 to 2020.