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2.Which of the following is NOT true
A.When a CBOE call option on IBM is exercised, IBM issues more stock
B.An American option can be exercised at any time during its life
C.An call option will always be exercised at maturity if the underlying asset price is greater than the strike price
D.A put option will always be exercised at maturity if the strike price is greater than the underlying asset price.

Answer: A
When an IBM call option is exercised the option seller must buy shares in the market to sell to the option buyer. IBM is not involved in any way. Answers B, C, and D are true.

New comment

BrianaFahey (17.01.2025)

The statement that is NOT true is A: when a CBOE call option on IBM is exercised, IBM does not issue more stock. Instead, the option seller buys shares in the market to fulfill the transaction. Similarly, exercising options can be as strategic as navigating the levels in Geometry Dash, where timing and decisions matter greatly. Keep your options sharp!
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geraldortiz (25.12.2024)

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ErikSturgill (05.09.2024)

The correct answer is A. When the CBOE call option on IBM is exercised, IBM does not issue additional shares. Instead, the option seller must buy shares on the market to sell to the buyer. If you like similar challenges in https://iogamesonl.com/ can bring interesting experiences!

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Every relation from the set A to the set B is a function from the set A to the set B.
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heartpulsewant (09.04.2024)

Every relation from the set A to the set B is a function from the set A to the set B.
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Crafting a Symphony of Colors:
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adelebrown68 (31.08.2023)

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Flashcard info:

Author: CoboCards-User

Main topic: Finance & Investment

Topic: Derivatives

Published: 27.10.2015

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