Which of the Following Statements Is False

question 52

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) 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.

---

Definitions:

Millions

A numerical unit equal to 1,000,000 or 10^6, often used in accounting and financial reporting to denote large values.

Cash Flow

The net amount of cash being transferred into and out of a business, reflecting the company's liquidity and overall financial health.

Stockholders

Individuals or entities that own shares in a corporation, thereby holding ownership interest in the company.