Which of the Following Statements Is FALSE

question 19

Multiple Choice

Which of the following statements is FALSE?

• A)When a holder of an option enforces the agreement and buys or sells a share of stock at the agreed-upon price,he is exercising the option.
• B)There are two kinds of options.European options allow their holders to exercise the option on any date up to and including a final date called the expiration date.
• C)Because an option is a contract between two parties,for every owner of a financial option there is also an option writer,the person who takes the other side of the contract.
• D)The price at which the holder buys or sells the share of stock when the option is exercised is called the strike price or exercise price.

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Definitions:

Wage

The fixed regular payment, typically paid on a daily or weekly basis, made by an employer to an employee, especially to a manual or unskilled worker.

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Workers who manually or mechanically harvest grapes from vineyards.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that suppliers are willing to offer for sale.

Supply

The overall quantity of a particular product or service that is accessible to buyers.