Which of the Following Statements Is False

question 16

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.

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Definitions:

Antecedent State

The condition or state of an individual before encountering a specific situation or stimulus, which can affect their reactions or decisions.

Prepurchase Anxiety

A consumer's feeling of apprehension or fear prior to making a purchase, often due to uncertainty or potential regret.

Hedonic Shopping

Shopping activities driven by the pursuit of pleasure, leisure, and emotional gratification.

Timestyle

The manner in which individuals perceive and utilize their time, reflecting their priorities, values, and lifestyle.