Which of the following statements is FALSE?
A) The intrinsic value of an option is the value it would have if it expired immediately.
B) A European option cannot be worth less than an identical American option.
C) Put options increase in value as the stock price falls.
D) A put option cannot be worth more than its strike price.
Answer: B
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Before any internal control procedure is initiated, which of the following questions must be primarily addressed by a company?
A) Will this put an end to theft? B) Is this the best security money can buy? C) How much benefit will be derived from the cost of the procedure? D) Will this prevent accounting errors?
If a company produces product A then it must also produce either product B or product C. Which of the following constraints enforces this condition?
A) XA - XB - XC ? 0 B) XA + XB + XC ? 2 C) XA + (XB - XC) ? 0 D) XA + XB + XC ? 2 E) XA - XB - XC ? 0