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Which of the Following Is NOT True About Call and Put

Question 2

Multiple Choice

Which of the following is NOT true about call and put options:


A) An American option can be exercised at any time during its life
B) A European option can only be exercised only on the maturity date
C) Investors must pay an upfront price (the option premium) for an option contract
D) The price of a call option increases as the strike price increases

Correct Answer:

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