Which of the Following Statements Is CORRECT

question 9

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.