True or False: A player cannot be traded for one year if signed to a designated veteran player extension.

The statement is true. When a player signs a designated veteran player extension, they are indeed restricted from being traded for a year following the signing of that contract. This provision is designed to protect both the player and the team, ensuring that the player remains with their current team long enough to fulfill the team's commitment demonstrated by the extension.

This rule encourages teams to invest in players who have demonstrated talent and potential while also allowing those players to develop a sense of stability which can be important for their performance and growth. The designated veteran player extensions often involve significant financial commitments; thus, the restriction on trading serves as a safeguard for the team’s investment in the player's overall trajectory and relationship with the organization.

Other options presented align more with specific scenarios that do not impact the general restriction imposed by the designated veteran player extension. The understanding of these additional conditions is important but does not change the year-long trade restriction associated with such contracts.