Call options on IBM listed stock options are
A)issued by IBM Corporation.
B)created by investors.
C)traded on various exchanges.
D)A and C.
E)B and C.

Question

Quizplus · Accepted Answer

Call options on IBM listed stock options are created by investors and traded on various exchanges. These options give the holder the right, but not the obligation, to buy IBM stock at a specified price (strike price) within a specific time period. Since these options are created by investors, they are not issued by IBM Corporation.

Call Options on IBM Listed Stock Options Are