Final answer:
FALSE. Both the buyer and the seller of an options contract can default.
Step-by-step explanation:
The statement 'Only the short can default in an options contract' is False. Both the buyer (long) and the seller (short) of an options contract can default if they fail to fulfill their obligations.
An options contract is a financial derivative that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price (known as the strike price) before or at the expiration date of the contract. The buyer of the option pays a premium to the seller (writer) of the option for this right. Options are commonly used in financial markets for hedging, speculation, and risk management.