Question

Which of the following is NOT true? Group of answer choices A call option gives the holder the right to buy an asset by a certain date for a certain price A put option gives the holder the right to sell an asset by a certain date for a certain price The holder of a forward contract is obligated to buy or sell an asset The holder of a call or put option must exercise the right to sell or buy an asset

Answer 1

Answer:The holder of a call or put option must exercise the right to sell or buy an asset.

Explanation:The holder of a right or put option has the right to exercise that power but it is not a mandatory right,he or she can decide not to exercise that power.

All other options are correct, a call or gives the holder the right to buy an asset at a certain date and at a specific price.

A put option gives the holder the right to sell an asset at a specific date and price.

The holder of a forward contract is obligated to buy or sell an asset.