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Problem:

Which of the following is a false statement?

A. When one writes a put option, he is taking a short position of the put option.

B. When options are exercised, the company does not issue new shares of its own stock.

C. If one holds an American option, he can exercise the option at any time before expiration.

D. Exercising an in-the-money option results in a profit.

Justify your answer.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91146283

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