Which of the Following Statements Is FALSE

question 4

Multiple Choice

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 its American counterpart.
• C)Put options increase in value as the stock price falls.
• D)A put option cannot be worth more than its strike price.

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Definitions:

Vena Cava

One of two large veins that empty into the right atrium of the heart.

Right Atrium

The right upper chamber of the heart that receives deoxygenated blood from the body through the vena cava.

Right Ventricle

One of the four chambers of the heart, responsible for pumping deoxygenated blood to the lungs.

Pathology

The medical discipline that studies the causes, nature, and effects of diseases through the examination of body tissues, organs, bodily fluids, and autopsies.