Which of the Following Is Not True Regarding Options

question 110

Multiple Choice

Which of the following is not true regarding options?

• A) The buyer of a call option has the right to buy the currency at the strike price.
• B) The writer of a call option has the obligation to sell the currency to the buyer if the option if exercised.
• C) The buyer of a put option has the right to sell the currency at the strike price.
• D) The writer of a put option has the obligation to sell the currency to the buyer if the option is exercised.

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Definitions:

Negatively Skewed

A characteristic of a distribution where the tail on the left side of the distribution is longer or fatter than the right side, indicating that the bulk of the values lie to the right side.

Median

The middle value in a sorted list of numbers, dividing the data into two halves.

Mode

The value that appears most frequently in a dataset.

Sample Mean

The average value of a sample set of numbers, calculated by adding all the observations and dividing by the number of observations.