Which of the Following Statements Is FALSE

question 49

Multiple Choice

Which of the following statements is FALSE?

• A)An option holder would not exercise an in-the-money option.
• B)The option seller,also called the option writer,sells (or writes)the option and has a short position in the contract.
• C)Because the long side of an option contract has the option to exercise,the short side has an obligation to fulfill the contract.
• D)When the exercise price of an option is equal to the current price of the stock,the option is said to be at-the-money.

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