Which of the Following Statements Is False

question 58

Multiple Choice

Which of the following statements is false?

• A) Option contracts are a zero sum game.
• B) If an in-the-money option is not exercised at expiration, you will lose money.
• C) It is possible for you to lose all of your investment in an option.
• D) One advantage to buying options on a stock rather than the stock itself is that it requires a smaller initial investment.
• E) As the price of a stock falls, the value of a put option on the stock also falls.