Which of the Following Statements Is False

question 7

Multiple Choice

Which of the following statements is false?

• A) The option buyer, also called the option holder, holds the right to exercise the option and has a long position in the contract.
• B) The market price of the option is also called the exercise price.
• C) If the payoff from exercising an option immediately is positive, the option is said to be in-the-money.
• D) As with other financial assets, options can be bought and sold. Standard stock options are traded on organized exchanges, while more specialized options are sold through dealers.

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Definitions:

Outstanding Deposit

Refers to funds that have been deposited but not yet credited to the depositor's account.

Outstanding Checks

Checks that have been written and recorded in the payer's accounting system but have not yet been cashed or cleared by the bank.

Adjusted Cash Balance

A financial metric representing the amount of available cash after accounting for adjustments such as outstanding checks or deposits in transit.

Check Register

A record book used to keep track of all the checks issued, deposits made, and current balance in a checking account.