Stock options
A) are traded on exchanges.
B) are relatively simple.
C) are less risky than stocks.
D) pay dividends.

Question

Quizplus · Accepted Answer

Stock options are traded on exchanges, allowing investors to speculate on or hedge against the volatility of stock prices. Unlike stocks, options do not pay dividends, can be complex due to their nature and terms, and carry a different risk profile, often considered more risky due to their leverage and expiration characteristics.

Stock Options