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:

Regular Exercise

Routine physical activity intended to improve or maintain physical fitness and overall health.

Sternocleidomastoid

A prominent neck muscle that extends diagonally across the side of the neck, involved in the rotation and flexion of the head.

Forced Inspiration

The process of taking air into the lungs with the use of accessory respiratory muscles, in addition to the primary muscles, usually under conditions of high demand or respiratory distress.

Pectoralis Minor

A thin, triangular muscle located beneath the pectoralis major, involved in movements of the shoulder and chest.