Exercise price of an option is equal to the current price

Assignment Help Financial Management

Reference no: EM13943301

Which of the following statements is false?

A) The option seller, also called the option writer, sells (or writes) the option and has a short position in the contract.

B) 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.

C) A holder would not exercise an in-the-money option.

D) Because the long side has the option to exercise, the short side has an obligation to fulfill the contract

Reference no: EM13943301

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