Offsetting an Over-The-Counter Option Contract Cancels Both Contracts

question 56

True/False

Offsetting an over-the-counter option contract cancels both contracts.

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Definitions:

External Motivation

The drive to perform a task or participate in an activity because of external rewards or pressures, as opposed to internal desire or satisfaction.

Positivism

a philosophical theory stating that certain ("positive") knowledge is based on natural phenomena and their properties and relations as verified by empirical sciences.

Exotic Species

are species that are introduced into a new habitat where they are not naturally found, often causing ecological disruption.