The ________ side of an options contract has the option to exercise, while the ________ side has an obligation to fulfill the contract.

Select one:

A. short, short

B. short, long

C. long, long

D. long, short

2.When the exercise price of a call option is higher than the current price of the stock, the option is said to be ________.

Select one:

A. at-the-money

B. in-the-money

C. out-of-the-money

D. none of the above

Question 3

Which of the following statements is FALSE?

Select one:

A. Because the long side has the option to exercise, the short side has an obligation to fulfill 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. The option seller, also called the option writer, sells (or writes) the option and has a short position in the contract.

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