Which of the following statements is FALSE?
A)An option holder would not exercise an in-the-money option.
B)The option seller,also called the option writer,sells (or writes)the option and has a short position in the contract.
C)Because the long side of an option contract has the option to exercise,the short side has an obligation to fulfill the contract.
D)When the exercise price of an option is equal to the current price of the stock,the option is said to be at-the-money.

Question

Quizplus · Accepted Answer

An option holder may choose to exercise an in-the-money option if they believe it is financially beneficial to do so.

Which of the Following Statements Is FALSE