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Which of the following statements is false regarding the evaluation of alternatives?

A. The selection of alternatives is determined by the decision variable chosen and the decision rule used B. Each alternative must be explicitly stated C. A decision variable is defined by an outcome that may be measured D. A decision rule is determined by which outcomes may be compared E. all of the above are true

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KD Industries stock is currently trading at $32 per share. Consider a put option on KD stock with a strike price of $30. The intrinsic value of this put option is ________

A) $0 B) -$2 C) $2 D) $30

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