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) An option holder is not entitled to receive dividends unless he or she exercises their option before the stock goes ex dividend.

Question

Quizplus · Accepted Answer

Option holders do not receive dividends unless they exercise their options and own the stock before the ex-dividend date.

Which of the Following Statements Is Correct