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.

---

Definitions:

Public Disclosure Test

A legal standard used to determine whether information has been effectively communicated to the public, particularly in defamation and privacy cases.

Ethics Shapes

Suggests that ethical principles influence or determine the formation of personal values and behavior.

Business Laws

Set of rules and regulations that govern the formation, operation, and dissolution of businesses.

Contract Laws

Contract laws are the body of laws that govern the formation, execution, and enforcement of agreements between parties.