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Which of the Following Statements Is FALSE

Question 19

Multiple Choice

Which of the following statements is FALSE?


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

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