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Commerce · Q672

Financial Management

Graduate and Post Graduate · Commerce · question 672

Q672

Stock option is more worthwhile if it is

A.
extremely volatile
Answer
B.
less volatile
C.
stable stock
D.
unstable price stock

Answer: Option A

Solution

Answer: Option A
Solution:
Stock option is more worthwhile if it is extremely volatile. 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.
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