Which of the Following Statements Is FALSE

question 49

Multiple Choice

Which of the following statements is FALSE?

• A)When the exercise price of an option is equal to the current share price, the option is said to be 'at-the-money'.
• B)Because the 'long side' has the option to exercise, the 'short side' has an obligation to fulfil the contract.
• C)A holder would not exercise an 'in-the-money' option.
• D)The 'option seller', also called the 'option writer', sells (or writes)the option and has a short position in the contract.

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