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Generally Accepted Accounting Principles (GAAP) MCQs

If the Exercise Price of a purchased call option is less than Market Price, then which of the following is TRUE?

The effect of the purchased option is dilutive

The buyer will not be able to excercise the option

The effect of the purchased option is antidilutive

The effect of the purchased option is neither antidilutive nor dilutive

Answer

Correct Answer: The effect of the purchased option is antidilutive

Explanation:

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