Which of the Following Statements Is False

question 24

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:

Ideal Body Weight

A medically and aesthetically optimal weight a person can have based on their height, gender, and body frame, often used in health assessments.

Obesity

Weighing more than 30 percent above your ideal body weight.

Guidelines for Good Health

Recommended practices or principles aimed at promoting and maintaining good health and well-being.