Which of the Following Is NOT True

question 19

Multiple Choice

Which of the following is NOT true

• A) When a CBOE call option on IBM is exercised, IBM issues more stock
• B) An American option can be exercised at any time during its life
• C) An call option will always be exercised at maturity if the underlying asset price is greater than the strike price
• D) A put option will always be exercised at maturity if the strike price is greater than the underlying asset price.

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Definitions:

Reclaim Goods

The process of recovering goods that have been sold or disposed of, often seen in bankruptcy or default situations.

Cover

In contract law, the purchasing of goods or services by a buyer to replace those promised but not delivered by the seller.

Substitute Goods

Substitute goods are products or services that can replace or be used in place of another due to similarities in function or characteristics, affecting consumer choices.

Above Market Rate

A price or rate that is higher than the prevailing market standard or average.