Which of the Following Statements Is FALSE

question 57

Multiple Choice

Which of the following statements is FALSE?

• A) A call option gives the owner the right to buy the asset.
• B) A put option gives the owner the right to sell the asset.
• C) A financial options contract gives the writer the right (but not the obligation) to purchase or sell an asset at a fixed price at some future date.
• D) A stock option gives the holder the option to buy or sell a share of stock on or before a given date for a given price.

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Definitions:

Median

A statistical measure representing the middle value in a sorted, ascending or descending, list of numbers.

Mode

The value that appears most frequently in a given set of data, or a specific way or manner in which something occurs or is experienced.

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution without violating any constraints.

Mean

A measure of central tendency in statistics, representing the average of a set of numbers, calculated by dividing the sum of the values by the number of values.