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Which of the Following Statements Is Correct

Question 2

Multiple Choice

Which of the following statements is correct?


A) Put options give investors the right to buy a stock at a certain strike price before a specified date.
B) Call options give investors the right to sell a stock at a certain strike price before a specified date.
C) LEAPS are very short-term options that were created relatively recently and now trade in the market.
D) A call option holder is not entitled to receive dividends unless he or she exercises his or her option to buy the underlying shares.

Correct Answer:

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