Which of the Following Statements Is False

question 14

Multiple Choice

Which of the following statements is false?

• A) When a holder of an option enforces the agreement and buys or sells a share of stock at the agreed-upon price, he is exercising the option.
• B) There are two kinds of options. European options allow their holders to exercise the option on any date up to and including a final date called the expiration date.
• C) Because an option is a contract between two parties, for every owner of a financial option, there is also an option writer, the person who takes the other side of the contract.
• D) The price at which the holder buys or sells the share of stock when the option is exercised is called the strike price or exercise price.

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