Which of the Following Statements About Options Is Not True

question 77

Multiple Choice

Which of the following statements about options is not true?

• A)Covered puts reduce risks.
• B)Options holders generally make money by buying or selling the underlying asset.
• C)Most options expire worthless.
• D)Stock options are considered high-risk.

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Definitions:

Atomic Open Sentence

A basic, unquantified statement that contains variables and can be true or false depending on the values of these variables.

Compound

Consisting of two or more elements that are combined in a specific way.

Atomic

Relates to atoms, the smallest constituent units of ordinary matter, or denotes something basic and indivisible in a particular context.

Truth-functional Compound

A complex statement in logic that is determined to be true or false based entirely on the truth values of its component statements.