Which one of the following is true for option contracts? A. If an option buyer...

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Finance

Which one of the following is true for option contracts?

A. If an option buyer decides to exercise the option, she will always buy the underlying security from the option seller at the strike price.

B. As a call option strike price increases, while everything else being equal, the call option becomes more valuable.

C. The protective put strategy is often used by short-sellers to manage down-side risk.

D. None of the above.

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