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Which of the Following Is Correct

Question 131

Multiple Choice

Which of the following is correct?


A) The broker pays you interest on money borrowed to purchase stock on margin.
B) Selling short is selling stock borrowed from a brokerage firm.
C) A put option is the right, but not the obligation, to purchase a stock at a specified price by a given date.
D) A brokerage firm receives double its commission when stock is bought and sold when the investor is selling short.
E) If the stock price increases and you purchased stock on margin, you may receive a margin call.

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