Which of the Following Statements About Option Contracts Is Not

question 18

Multiple Choice

Which of the following statements about option contracts is not correct?

• A) The option writer has the right to exercise the option.
• B) Option contracts can create a legal right to buy or sell a financial asset.
• C) The option holder has the right to exercise the option.
• D) All of the above are correct.

---

Definitions:

Rods

Rod-shaped photoreceptors that are sensitive only to the intensity of light.

Feature Detectors

Neurons in the sensory cortex that fire in response to specific features of sensory information such as lines or edges of objects.

Neurons

Specialized cells in the nervous system that transmit information through electrical and chemical signals.

Iris

A muscular membrane whose dilation regulates the amount of light that enters the eye.