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

Question

Quizplus · Accepted Answer

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

All of the Following Are True of Calls and Puts