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Which of the Following Statements Is FALSE

Question 34

Multiple Choice

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.

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