Vidyalelo
Commerce · Q660

Financial Management

Graduate and Post Graduate · Commerce · question 660

Q660

In stock option, a little chance exists for large gain on stock when price of stock

A.
have volatile movement
B.
moves freely
C.
rarely moves
Answer
D.
stays same

Answer: Option C

Solution

Answer: Option C
Solution:
In stock option, a little chance exists for large gain on stock when price of stock rarely moves. A stock option gives an investor the right, but not the obligation, to buy or sell a stock at an agreed upon price and date.