Which of the Following Is Not True Regarding Options

question 130

Multiple Choice

Which of the following is not true regarding options?

• A) Options are traded on exchanges, never over-the-counter.
• B) Similar to futures contracts, margin requirements are normally imposed on option traders.
• C) Although commissions for options are fixed per transaction, multiple contracts may be involved in a transaction, thus lowering the commission per contract.
• D) Currency options can be classified as either put or call options.
• E) All of the above are true.

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Definitions:

Compounded Quarterly

A method where interest is added to the principal every three months which allows interest to be earned on the previously accumulated interest.

Scholarships

Financial support awarded to students based on academic or other achievements to help fund their education.

Trust Fund

A fund comprised of a variety of assets intended to provide benefits to an individual or organization, managed by a trustee.

Compounded Annually

Refers to the process of calculating interest on an investment or loan once per year, adding it to the principal amount.