Multiple Choice
Which of the following statements about option contracts is incorrect?
A) The seller of a put option loses if the spot price, plus the premium, is below the exercise price when the option is exercised.
B) The buyer of a call option benefits if the price of the spot is above the exercise price when the option is exercised.
C) The buyer of a put option gains if the price of the spot is below the exercise price when the option is exercised.
D) The seller of a call option loses if the spot price, plus the premium, is below the exercise price when the option is exercised.
Correct Answer:
Verified
Correct Answer:
Verified
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