Concerning Index Options,which of the Following Statements Is FALSE

question 57

Multiple Choice

Concerning index options,which of the following statements is FALSE?

• A)Index options appeal to speculators due to the leverage they offer.
• B)Investors can write index options.
• C)If exercised the holder of an index option receives the strike price.
• D)Index options are settled in cash.

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Definitions:

Interpretive

A descriptor used to indicate a perspective or research approach that seeks to understand how humans interpret or make sense of events in their lives. Interpretive studies can be understood as attempts to place oneself "in the other person’s shoes."

Experimental Science

A branch of science that relies on controlled experiments to validate hypotheses and theories.

Synchronous

Coordinated communication—for example, focus group members interacting with each other in “real time.”

Real Time

A mode of operation in computing where processes are executed immediately and without delay.