Reference no: EM13515553

True/False

1.  A call option gives you the right to buy.

2.  A put option is a promise to sell.

3.  Options can be created, and they can be destroyed.

4.Selling an option as an opening transaction is called writing the option.

5.  Listed options are fungible.

6.  Options expire on the second Friday of the expiration month.

7.  At the CBOE, options trade via the specialist system.

8.A European option may only be exercised at expiration.

9.An American call option should normally not be exercised until just before expiration.

10.A put writer may have to involuntarily buy shares if the put holder decides to exercise.

11.An option that is in-the-money must have intrinsic value.

12.Buying a call is the same as writing a put.

13.The value of a perpetual European put option is zero.