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Which one of the following statements is NOT correct. The buyer of a call option has the right to any dividends paid after the option
Which one of the following statements is NOT correct.
The buyer of a call option has the right to any dividends paid after the option was purchased. | ||
The buyer of a call option will break even (profit=0) when the price of the stock equals strike price plus the premium.
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European options can only be exercised on the expiration date but can be sold to another investor on any trading day. | ||
Because puts and calls derive their value from the behavior of some other real or financial asset, they are known as derivative securities. |
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