Which of the Following Statements Is FALSE

question 34

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:

Sensorimotor Stage

The first stage in Piaget's theory of cognitive development (birth to about 2 years), where infants learn through sensory and motor interactions.

Functional Play

Play activities that involve simple, repetitive activities typical of young children, which help in the development of physical and cognitive abilities.

Symbolic Play

Play in which children make believe that objects and toys are other than what they are. Also called pretend play.

Sensorimotor Stage

The first of Jean Piaget's stages of cognitive development, where infants learn through interacting with the world using their senses and motor activities.