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Which of the Following Statements Is FALSE

Question 2

Multiple Choice

Which of the following statements is FALSE?


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

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