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:

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating resources to satisfy their wants and needs.

Business Model

A strategic plan outlining how a company creates, delivers, and captures value, essentially explaining how it operates and makes money.

Work in Progress

This term indicates ongoing projects or tasks that are currently under development and not yet complete.

Business Plan

A detailed document outlining the strategy, goals, financial projections, and operational guidelines for a business.