Which of the following statements is FALSE?
A)The option buyer,also called the option holder,holds the right to exercise the option and has a long position in the contract.
B)The market price of the option is also called the exercise price.
C)If the payoff from exercising an option immediately is positive,the option is said to be in-the-money.
D)As with other financial assets,options can be bought and sold.Standard stock options are traded on organized exchanges,while more specialized options are sold through dealers.

Question

Quizplus · Accepted Answer

The market price of the option is not the exercise price. The market price is the current market value of the option, while the exercise price is the price at which the underlying asset can be bought or sold if the option is exercised.

Which of the Following Statements Is FALSE