Which of the following is not a risk of program trading?
A)the stocks cannot be simultaneously sold at expiration
B)fractional contracts cannot be purchased or sold
C)the dividends are not certain
D)the stocks cannot be purchased simultaneously
E)none of the above

Question

Quizplus · Accepted Answer

Program trading involves the rapid buying and selling of stocks based on certain criteria and algorithms. The risks mentioned in options A, B, and C (inability to sell stocks simultaneously at expiration, inability to deal with fractional contracts, and uncertain dividends) do not directly relate to the inherent risks of program trading itself. These are more general risks associated with trading and investing in the stock market, not specific drawbacks of program trading. Therefore, none of the options listed accurately represent a risk not associated with program trading.

Which of the Following Is Not a Risk of Program