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Which of the Following Statements Is False

Question 329

Multiple Choice

Which of the following statements is false?


A) Option contracts are a zero sum game.
B) If an in-the-money option is not exercised at expiration, you will lose money.
C) It is possible for you to lose all of your investment in an option.
D) One advantage to buying options on a stock rather than the stock itself is that it requires a smaller initial investment.
E) As the price of a stock falls, the value of a put option on the stock also falls.

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