Which of the Following Statements Is False

question 3

Multiple Choice

Which of the following statements is false?

• A) Options also allow investors to speculate, or place a bet on the direction in which they believe the market is likely to move.
• B) Options where the strike price and the stock price are very far apart are referred to as deep in-the-money or deep out of-the-money.
• C) Call options with strike prices above the current stock price are in-the-money, as are put options with strike prices below the current stock price.
• D) European options allow their holders to exercise the option only on the expiration date holders cannot exercise before the expiration date.