Which of the Following Statements Is FALSE

question 6

Multiple Choice

Which of the following statements is FALSE?

• A)Options also allow investors to speculate,or place a bet on the direction in which they believe the market is likely to move.
• B)Options where the strike price and the stock price are very far apart are referred to as deep in-the-money or deep out of-the-money.
• C)Call options with strike prices above the current stock price are in-the-money,as are put options with strike prices below the current stock price.
• D)European options allow their holders to exercise the option only on the expiration date-holders cannot exercise before the expiration date.

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Definitions:

Index

A statistical measure or indicator that represents the performance or price of a specific set of stocks, securities, or other items.

Metrics

Quantitative measures used to track and assess the status of specific business processes, performance, and outcomes, aiding in decision-making and performance evaluation.

Gross Margin

The difference between the revenue a company brings in from selling goods and the cost of those goods sold, typically expressed as a percentage of revenue.

COGS

Cost of Goods Sold; the direct costs attributable to the production of the goods sold in a company.