Which of the Following Statements Is CORRECT

question 24

Multiple Choice

Which of the following statements is CORRECT?

• A) call options give investors the right to sell a stock at a certain strike price before a specified date.
• B) options typically sell for less than their exercise value.
• C) leaps are very short-term options that were created relatively recently and now trade in the market.
• D) an option holder is not entitled to receive dividends unless he or she exercises their option before the stock goes ex dividend.
• E) put options give investors the right to buy a stock at a certain strike price before a specified date.

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Definitions:

Constructive Stress

A form of stress that is perceived as manageable and motivating, encouraging personal growth and achievement.

Stimulate Creativity

The act of encouraging new and innovative ideas or ways of thinking, often by creating an environment that fosters curiosity, openness, and risk-taking.

Increase Effort

The act of exerting more energy or working harder to achieve a higher level of performance or productivity.

Personal Factors

Individual attributes such as personality, age, personal beliefs, and life experiences that influence behavior and decisions.