Which One of the Following Statements Concerning Options Is Correct

question 27

Multiple Choice

Which one of the following statements concerning options is correct?

• A) One option covers 1,000 shares of stock.
• B) A put gives the option holder the right to buy a stated amount of securities.
• C) The owner of a call is entitled to the dividends paid on the underlying shares of stock.
• D) Option holders can profit on movements of the price of the underlying security.

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Definitions:

Recommended Activities

Suggestions for physical or mental actions aimed at improving health, skill, or well-being.

Cardiorespiratory Endurance

The ability of the heart, lungs, and blood vessels to supply oxygen to working muscles during physical activity for extended periods.

Aerobic Activities

Physical exercises that increase the heart rate and improve the efficiency of the cardiovascular system in absorbing and transporting oxygen.

Muscular Strength

The maximum amount of force a muscle or muscle group can exert in a single effort.