Which of the Following Statements Is FALSE

question 34

Multiple Choice

Which of the following statements is FALSE?

• A)A 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 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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Definitions:

Schizophrenia

A severe mental disorder characterized by disturbances in thought, perception, and behavior, leading to a disconnect from reality.

Delusions of Grandeur

A belief in one's exaggerated sense of importance, power, knowledge, or identity, often found in manic or psychotic conditions.

Visual Hallucinations

Experiences in which someone sees something that does not exist outside their mind, often associated with psychiatric or neurological conditions.

Waxy Flexibility

A symptom of certain psychiatric conditions characterized by a person's limbs remaining in the position they are placed by someone else for an extended period.