Learning about option contracts includes learning words you're probably familiar with but are being used in new ways to discuss options. Make sure you understand the terminology by answering the following questions: True or False: Rashid holds an option contract written by Sawyer. Rashid notified Sawyer that he decided to exercise his option. Sawyer must honor Rashid's decision. O O False True True or False: When Sawyer sold Rashid an option, he paid Rashid a commission called a premium. O O True False True or False: Sawyer wrote the option and owns the underlying stock. Sawyer is in a speculative position. O O False True True or False: Chad holds many options. If he decides to exercise any of them, the transaction will be at the striking price. O O True False True or False: Stefan holds a call option. If he exercises his option, Stefan will sell the optioned asset. O O True False True or False: Stefan let his option contract expire without exercising the option. His decision is typical. O O False True