Which of the Following Statements Is FALSE

question 7

Multiple Choice

Which of the following statements is FALSE?

• A)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.
• B)There are two kinds of options. European options allow their holders to exercise the option on any date up to and including a final date called the expiration date.
• C)When a holder of an option enforces the agreement and buys or sells a share at the agreed-upon price, he is 'exercising the option'.
• D)The price at which the holder buys or sells the share when the option is exercised is called the 'exercise price'.

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