Which of the following statements is false?
A) An investor who is long a call option is the option buyer.
B) To exercise an option is the same as writing an option.
C) An investor who is short a call option is the option writer.
D) Expiration date is the last date on which options can be converted or exercised.
E) The strike price, which is also called exercise price, is the price at which an investor can buy the underlying asset.

Question

Quizplus · Accepted Answer

To exercise an option means to utilize the right to buy or sell the underlying asset at the strike price, whereas writing an option means to create and sell an option contract, which are two distinct actions.

Which of the Following Statements Is False