Which of the Following Statements Is False

question 22

Multiple Choice

Which of the following statements is false?

• A) For a call written on a stock with positive beta, the beta of the call always exceeds the beta of the stock.
• B) The beta of a put option written on a negative beta stock is always negative.
• C) As the stock price changes, the beta of an option will change, with its magnitude falling as the option goes in-the-money.
• D) A put option is a hedge, so its price goes up when the stock price goes down.

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Definitions:

Corporate Level

Pertains to high-level strategic decision-making that concerns the entire organization, involving actions such as mergers, acquisitions, and overall growth strategies.

Core Purpose

The fundamental reason a company exists, beyond just making money, which guides its business decisions and shapes its culture.

Marketing Mix

A set of controllable marketing tools—product, price, place, and promotion—that a company uses to produce a desired response in the target market.

Inbound Logistics

The activities related to receiving, storing, and distributing inputs internally needed for the production of goods or services.