Question
True or False: 1. If you are short a put option that is exercised, and you are assigned, then you are required to sell the
True or False:
1. If you are short a put option that is exercised, and you are assigned, then you are required to sell the stock at the strike price.
2. An American option can be exercised only at the expiration date.
3. A call option gives the owner the right to purchase a fixed number of shares at a specified price, but no right to receive dividends paid during the life of the option.
4. A put option with a strike price of 45 is out of the money if the spot price of the underlying asset is 40.
5. Requiring a letter of credit or collateral is a way to protect oneself from counterparty credit risk.
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