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Which of the following statements is FALSE? O A call option gives the owner the right to buy the asset. A put option gives the
Which of the following statements is FALSE? O A call option gives the owner the right to buy the asset. A put option gives the owner the right to sell the asset. O A financial options contract gives the owner the right (but not the obligation) to purchase or sell an asset at a fixed price at some future date. A stock option gives the writer the option to buy or sell a share of stock on or before a given date for a given price. QUESTION 2 Which of the following statements is FALSE? When a writer of an option enforces the agreement and buys or sells a share of stock at the agreed-upon price, he is exercising the option. There are two kinds of options. American options allow their holders to exercise the option on any date up to and including a final date called the expiration date. Because an option is a contract between two parties, for every owner of a financial option, there is also an option writer, the person who takes the other side of the contract. The price at which the holder buys or sells the share of stock when the option is exercised is called the strike price or exercise price
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