Which of the Following Statements Is FALSE

question 21

Multiple Choice

Which of the following statements is FALSE?

• A)Put-call parity gives the price of a European call option in terms of the price of a European put,the underlying stock,and a zero-coupon bond.
• B)For a given strike price,the value of a call option is higher if the current price of the stock is higher,as there is a greater likelihood the option will end up in-the-money.
• C)The value of an otherwise identical call option is higher if the strike price the holder must pay to buy the stock is higher.
• D)Because a put is the right to sell the stock,puts with a lower strike price are less valuable.

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Definitions:

Partnership Income

The total income earned by a partnership, distributed among partners according to the partnership agreement or ownership percentage.