Which of the Following Statements Is FALSE

question 34

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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