Options sold on exchanges are protected against:
A) stock dividends and splits.
B) cash dividends.
C) interest rate movements.
D) inflation.

Name: Options sold on exchanges are protected against: A) stock dividends and splits. B) cash dividends. C) interest rate movements. D) inflation.
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Question

Quizplus · Accepted Answer

Options sold on exchanges are adjusted for stock dividends and splits to maintain the value of the option contract.

Options Sold on Exchanges Are Protected Against