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:

Basic Functions

Refer to the essential, foundational activities or operations of an organization, system, or process that are necessary for achieving its goals and objectives.

Management

The process of planning, organising, leading, and controlling the use of resources to accomplish performance goals.

Organising

The process of structuring and arranging resources and activities efficiently to achieve objectives, often involves creating roles, responsibilities, and relationships.

Quality of Work Life (QWL)

The degree to which employees enjoy their jobs, work environment, and working conditions, aiming for higher job satisfaction and well-being.