Which of the Following Statements Is FALSE

question 37

Multiple Choice

Which of the following statements is FALSE?

• A)Because an American option cannot be worth less than its intrinsic value,it cannot have a negative time value.
• B)An American option with a later exercise date cannot be worth less than an otherwise identical American option with an earlier exercise date.
• C)The value of an option generally decreases with the volatility of the stock.
• D)The intrinsic value is the amount by which the option is currently in-the-money or 0 if the option is out-of-the-money.

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Definitions:

Self-Esteem

Refers to an individual's subjective assessment of their own worth, encompassing beliefs about oneself as well as emotional states such as triumph, despair, pride, and shame.

Autonomous Interdependence

Autonomous Interdependence describes a state in which individuals maintain their sense of independence while still actively participating in and contributing to their community or relationships.

Robert Selman

A developmental psychologist known for his work on social awareness stages in children.

Adolescents

A developmental stage that describes individuals typically between the ages of 10 and 19, characterized by significant physical, psychological, and social changes.