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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Definitions:

Retains

The ability to keep or hold onto something, such as employees retaining their jobs or customers retaining loyalty to a brand.

Vividness

Vividness describes the intensity or clarity of something, making it stand out in memory or perception due to its brightness, distinctiveness, or detail.

Cognitive Technique

Methods or strategies employed to improve mental processes such as learning, memory, and problem-solving.

Conceptual Setting

The framework or environment within which concepts or ideas are developed and understood, often influencing how they are perceived.