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Futures and Options

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Which of the following is not true:

(a) When a CBOE 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.

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Solution Summary

This posting answers, with explanation, a multiple choice question on CBOE, American, call & put options.

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