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Which of the Following Statements Is FALSE

Question 2

Multiple Choice

Which of the following statements is FALSE?


A) A call option gives the owner the right to buy the asset.
B) A put option gives the owner the right to sell the asset.
C) A financial options contract gives the writer the right (but not the obligation) to purchase or sell an asset at a fixed price at some future date.
D) A stock option gives the holder the option to buy or sell a share of stock on or before a given date for a given price.

Correct Answer:

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