Identify the False Statement Related to Break Forward Contracts

Multiple Choice

Identify the false statement related to break forward contracts.

A) It is a combination of spot and derivative positions that replicates an ordinary call option.
B) The initial positions are structured so that the overall position costs nothing up front.
C) Penalizes the investor if the option ends up out-of-the-money.
D) Break denotes the ability of the purchaser to void the contract.
E) All of the above statements are true related to break forward contracts.