Which of the Following Statements Is FALSE

question 34

Multiple Choice

Which of the following statements is FALSE?

• A)For a call written on a stock with positive beta,the beta of the call always exceeds the beta of the stock.
• B)The beta of a put option written on a negative beta stock is always negative.
• C)As the stock price changes,the beta of an option will change,with its magnitude falling as the option goes in-the-money.
• D)A put option is a hedge,so its price goes up when the stock price goes down.

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Definitions:

Debit Columns

Sections in accounting journals or ledgers where debits are recorded, used for increasing asset and expense accounts and decreasing liability, equity, and revenue accounts.

Adjusting Journal Entries

Entries made in the accounting records to correct any discrepancies or to make non-cash adjustments.

Wages Expense

The total cost incurred by an employer for paying the hourly earnings of its employees.

Wages Payable

The total amount of wages earned by employees that the company has not yet paid.