Concept 21.1-17 – Find the false statement
Fundamentals of Corporate Finance
Berk, DeMarzo, and Harford
Of the following choices, identify which is false:
- The owner of a put option has the right but not the obligation to sell the underlying asset.
- Financial options contracts give the writer the right, but not the obligation to purchase or sell the underlying asset at the strike (fixed) price at some future date.
- The owner of a call option has the right to buy the underlying asset
- The holder of a stock option can choose to buy or sell a share of stock.