Which of the Following Statements Is FALSE

question 38

Multiple Choice

Which of the following statements is FALSE?

• A)An American call on a non-dividend-paying stock has the same price as its European counterpart.
• B)The price of any call option on a non-dividend-paying stock always exceeds its intrinsic value.
• C)It is never optimal to exercise a call option on a dividend-paying stock early-you are always better off just selling the option.
• D)If present value of the dividend payment is large enough,the time value of a European call option can be negative,implying that its price could be less than its intrinsic value.

Explain the concept of direct democracy and identify examples of its application.

Describe the principles of representative democracy and how it differs from direct democracy.

Comprehend the historical demand for "no taxation without representation" and its significance in political reform.

Define the role and characteristics of government institutions in society.

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Definitions:

Equilibrium

A state in a market where supply equals demand, with no external forces causing disruption, hence prices tend to stabilize.

Labor Supply

The cumulative hours that workforce members are eager and able to dedicate to work, provided a set wage.

Marginal Productivity

The additional output resulting from the use of one more unit of a production factor.

Wages

Payments made to labor for their services, typically expressed per hour or per annum.