Which of the Following Statements Is False

question 36

Multiple Choice

Which of the following statements is false?

• A) An alternative to using the Black-Scholes formula is to compute the value of growth options using risk-neutral probabilities.
• B) Future growth options are not only important to firm value, but can also be important in the value of an individual project.
• C) While the Black-Scholes formula values American options, most growth options cannot be exercised at any time.
• D) Out-of-the-money calls are riskier than in-the-money calls, and because most growth options are likely to be out-of-the-money, the growth component of firm value is likely to be riskier than the ongoing assets of the firm.

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Definitions:

MtDNA Codes

Sequences of mitochondrial DNA that carry genetic information passed from mothers to their offspring.

MtDNA Located

Referring to mitochondrial DNA, which is found within the mitochondria of cells and inherited maternally, encoding genes important for cellular energy production.

MtDNA Copies

Refers to the number of copies of mitochondrial DNA present in a cell; mitochondrial DNA is inherited maternally and varies in copy number across cell types.

Restriction Enzyme

A protein produced by bacteria that cleaves DNA at specific sequences, widely used in molecular biology for gene cloning and DNA manipulation.