The Holder of an Option Contract

question 128

Multiple Choice

The holder of an option contract:

• A)has purchased it from the seller by paying the exercise price
• B)is known as the 'short' position
• C)has the obligation to settle the contract
• D)can choose to buy or sell the contract item on the exercise date
• E)will exercise the option contract at expiry if it is advantageous for them to do so.