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Which of the Following Statements Is FALSE

Question 3

Multiple Choice

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'.

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