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.

---

Definitions:

Incisors

Chisel-shaped teeth of a mammal; adapted for biting and cutting food. Compare with canines, premolars, and molars.

Digestive Tract

The series of hollow organs joined in a long, twisting tube from the mouth to the anus, where digestion and absorption of food occurs.

Rugae

Folds, such as those in the lining of the stomach.

Gastric Juices

are a mixture of mucus, hydrochloric acid, and digestive enzymes produced by the stomach lining to digest food.