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:

Incision

A cut made through the skin and tissue during surgery, usually made with a scalpel or other sharp instrument.

Ventral Surface

The front or abdominal side of the body of an animal or organ.

Dorsal Surface

The back side of the body in animals, opposite of ventral; often refers to the upper side.

Latissimus Dorsi

A broad, flat muscle on the back that helps in movement of the shoulder and the upper arm.