Which of the Following Is FALSE

question 28

Multiple Choice

Which of the following is FALSE?

• A) Options are always more volatile than the assets on which they are based.
• B) Returns on options are inherently non-normal.
• C) Returns on options are asymmetric.
• D) The volatility of an option changes with changes in the value of the underlying asset.
• E) Option pricing methods discount option payoffs at a risk-adjusted discount rate.

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Definitions:

Mechanized Agriculture

The use of advanced machinery and equipment in farming to increase efficiency, productivity, and scalability of agricultural operations.

Urban Riots

Violent disturbances that occur within urban areas, often as expressions of social or political grievances by marginalized groups.

Railroad Construction

This involves the building of railway lines, which was crucial for industrial growth and westward expansion in many countries during the 19th century.

Horace Greeley

An American newspaper editor and politician who founded the New York Tribune and was a major figure in the early Republican Party.