Which of the Following Is True of Call and Put

question 19

Multiple Choice

Which of the following is true of call and put options?

• A) Options are issued by private firms.
• B) The presence of options trading in a firm's stock could increases the firm's share price.
• C) Options are a source of funding to a corporation.
• D) Call options help to manage downside risk and put options help to manage upside risk.

---

Definitions:

Automatic Attitudes

Automatic attitudes are immediate, involuntary responses or evaluations that occur in the mind toward a person, object, or concept.

Deliberate Attitudes

Attitudes that are formed consciously and are the result of careful thought and consideration.

Consciously Aware

Being fully aware of one's thoughts, feelings, and environment in the present moment.

Automatic Attitudes

Immediate and instinctive evaluations that occur without conscious awareness towards people, objects, or issues.