By federal law,a stock option must carry a guarantee that the optionee will not lose any money and can always redeem the stock at the price at which it was purchased.

Question

Quizplus · Accepted Answer

There is no federal law that guarantees that a stock option holder will not lose any money and can always redeem the stock at the purchase price. The value of the stock can fluctuate based on the performance of the company and the market, and the option holder assumes the risk of loss.

By Federal Law,a Stock Option Must Carry a Guarantee That