Which of the Following Statements Is FALSE

question 6

Multiple Choice

Which of the following statements is FALSE?

• A)Options also allow investors to speculate,or place a bet on the direction in which they believe the market is likely to move.
• B)Options where the strike price and the stock price are very far apart are referred to as deep in-the-money or deep out of-the-money.
• C)Call options with strike prices above the current stock price are in-the-money,as are put options with strike prices below the current stock price.
• D)European options allow their holders to exercise the option only on the expiration date-holders cannot exercise before the expiration date.

---

Definitions:

Fractions

Mathematical expressions representing parts of whole numbers, typically made up of a numerator and a denominator.

Pounds

A unit of currency used in the United Kingdom and other British territories, also known as GBP (Great Britain Pounds).

Apples

The edible fruit of the apple tree, widely cultivated in temperate climates.

Pears

A sweet, bulbous fruit with a wide bottom and a tapering top, often green, yellow, or red, cultivated worldwide.