All of the following are true of calls and puts EXCEPT
A) options are issued by businesses.
B) the financial manager of a company has very little need to deal with options.
C) the presence of options trading in the firm's stock could, by increasing trading activity, stabilise the firm's share price in the marketplace.
D) options are not a source of funding to the corporation.

Question

Quizplus · Accepted Answer

Options are not issued by businesses; they are financial instruments traded on exchanges, and their existence does not directly involve the issuing company.

All of the Following Are True of Calls and Puts