Answer: C. When a CBOE call option on APPLE is exercised, APPLE issues more stock.
Step-by-step explanation:
Option C is quite false because when a Chicago Board Options Exchange (CBOE) call option on APPLE is exercised, APPLE DOES NOT issue more stock.
This is because this is a transaction in the Secondary market that does not involve Apple. The concerned party is the Option Seller who now has to sell stock to the Option buyer most probably at a price less than the market rate.