Which One of the Following Statements Concerning Options Is Correct

question 27

Multiple Choice

Which one of the following statements concerning options is correct?

• A) One option covers 1,000 shares of stock.
• B) A put gives the option holder the right to buy a stated amount of securities.
• C) The owner of a call is entitled to the dividends paid on the underlying shares of stock.
• D) Option holders can profit on movements of the price of the underlying security.

---

Definitions:

Conspiracy

Conspiracy refers to an agreement between two or more persons to commit an unlawful act, or a lawful act by unlawful means, often done in secret.

Auditory Hallucinations

The experience of hearing sounds or voices that are not present in the external environment, often associated with psychiatric conditions.

Darting Eyes

Rapid eye movements from one focus point to another, often indicative of nervousness, anxiety, or distraction.