Which of the Following Statements Is True

question 9

Multiple Choice

Which of the following statements is true?

• A) American options are options on securities of U.S. corporations, and the options are traded on American exchanges. European options are options on securities of U.S. corporations, but the options are traded on European exchanges.
• B) American options are options on securities which are traded on American exchanges. European options, also traded on American exchanges, are options on European corporations.
• C) American options give the holder the right to the dividend payment. European options do not.
• D) American options may be exercised anytime up to expiration. European options may be exercised only at expiration.

---

Definitions:

Standard Price

A pre-determined cost assigned to goods and services, used as a benchmark in budgeting and variance analysis.

Pounds

A unit of weight commonly used in the British imperial and United States customary measurement systems.

Direct Materials Price Variance

The difference between the actual cost of direct materials used in production and the expected (or standard) cost of those materials.

Per-unit Standards

Benchmarks or norms for the cost or quantity of materials, labor, and overhead required to produce one unit of product, used for budgeting and performance evaluation.