Pure options are instruments that are
A) Created by investors outside the firm.
B) Bought and sold primarily by investors and speculators.
C) Of greater importance to investors than to financial managers.
D) All of the above.
E) None of the above.

Question

Quizplus · Accepted Answer

Pure options are created and traded by investors outside the firm, making option trading primarily a concern for investors and speculators. While financial managers may use options as a risk management tool, options are primarily of greater importance to investors. Therefore, all of the above choices are correct.

Pure Options Are Instruments That Are