Which of the following statements is false?
A) A call option will sell for a fraction of the cost of the stock.
B) A futures contract can be written for a commodity (such as wheat),or for a currency.
C) A futures contract gives the owner the right,but not the obligation,to buy or sell a commodity at a specified price on a given future date.
D) The specified price at which an option gives the owner the right to buy a stock at is called the stick price.

Question

Quizplus · Accepted Answer

DC) A futures contract actually obligates the owner to buy or sell a commodity at a specified price on a given future date, unlike an option which gives the right but not the obligation.D) The term "stick price" is incorrect; the correct term is "strike price," which is the specified price at which an option gives the owner the right to buy (or sell) a stock.

Which of the Following Statements Is False