Which of the Following Statements Is False

question 29

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:

Discharged

The completion, termination, or fulfillment of an obligation, debt, or contract.

Professional Licensing Statutes

Laws and regulations that establish the requirements and standards for obtaining and maintaining a license to practice certain professions.

Public's Health

The science and practice of protecting and improving the health of a community, as by preventive medicine, health education, control of communicable diseases, application of sanitary measures, and monitoring of environmental hazards.

Age of Majority

The legally recognized age at which an individual is considered an adult and capable of assuming legal rights and responsibilities.