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10
Which of the following is NOT true
A.A call option gives the holder the right to buy an asset by a certain date for a certain price
B.A put option gives the holder the right to sell an asset by a certain date for a certain price
C.The holder of a call or put option must exercise the right to sell or buy an asset
D.The holder of a forward contract is obligated to buy or sell an asset
A.A call option gives the holder the right to buy an asset by a certain date for a certain price
B.A put option gives the holder the right to sell an asset by a certain date for a certain price
C.The holder of a call or put option must exercise the right to sell or buy an asset
D.The holder of a forward contract is obligated to buy or sell an asset
Answer: C
The holder of a call or put option has the right to exercise the option but is not required to do so. A, B, and C are correct
The holder of a call or put option has the right to exercise the option but is not required to do so. A, B, and C are correct
Flashcard info:
Author: CoboCards-User
Main topic: Finance & Investment
Topic: Derivatives
Published: 27.10.2015