Which of the following statements is FALSE?
A) The market price of the option is also called the 'exercise price'.
B) As with other financial assets, options can be bought and sold. Standard share options are traded on organised exchanges, while more specialised options are sold through dealers.
C) The 'option buyer', also called the 'option holder', holds the right to exercise the option and has a long position in the contract.
D) If the payoff from exercising an option immediately is positive, the option is said to be 'in-the-money'.
Correct Answer:
Verified
Q1: Which of the following statements is FALSE?
A)A
Q2: Which of the following statements is FALSE?
A)When
Q4: A 'call option' gives the owner the
Q5: Which of the following statements is FALSE?
A)Because
Q7: For every owner of a call option
Q7: An options contract obligates the owner to
Q8: When the exercise price of an option
Q9: _ options allow the holder to exercise
Q10: When the exercise price of a call
Q11: The _ is the total number of
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