Which of the Following Is Not True Regarding Options

question 22

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.

---

Definitions:

Affect

A term referring to the underlying experience of feeling, emotion, or mood.

Cognition

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.

Social Learning

The process of acquiring new behaviors and knowledge by observing and imitating others.

Modeling

The process of learning through the observation of others' behaviors, attitudes, or emotional expressions.