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The Value of a Stock Option Is Dependent Upon the Value

Question 19

Multiple Choice
The value of a stock option is dependent upon the value of the underlying stock. Thus, a stock option is a:
A) forward agreement.
B) derivative security.
C) mezzanine asset.
D) contingent security.
E) junior security.

The value of a stock option is dependent upon the value of the underlying stock. Thus, a stock option is a:


A) forward agreement.
B) derivative security.
C) mezzanine asset.
D) contingent security.
E) junior security.

Correct Answer:

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