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Basic Question 0 of 8
Which of the following statements about options and their underlying assets is FALSE?
B. The owner of the option is legally required to engage in a transaction involving the asset.
C. The holder of a long position on an option is the only party with the right to initiate a transaction involving the asset.
A. The value of an option, in comparison to its underlying asset, has the potential of creating an arbitrage opportunity.
B. The owner of the option is legally required to engage in a transaction involving the asset.
C. The holder of a long position on an option is the only party with the right to initiate a transaction involving the asset.
User Contributed Comments 2
| User | Comment |
|---|---|
| Shaan23 | Thought A was false too but guess not. |
| schweitzdm | As did I. |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
explain the exercise value, moneyness, and time value of an option
CFA® 2024 Level I Curriculum, Volume 5, Module 8.