Which of the following statements is are false?
A) A loan commitment is similar to a common stock put option in that a loan commitment buyer has the right to sell its indebtedness to the bank at a prespecified price over a prespecified time period.
B) Similar to a common stock put option, a loan commitment seller has the obligation to honor the contract when the buyer decides to exercise the commitment.
C) Common stock put options are transferable, while loan commitments are not.
D) Loan commitments can be partially exercised, while put options are either exercised in full or not at all.
E) All of the above is false
Correct Answer:
Verified
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