Which of the Following Statements Is False

question 19

Multiple Choice

Which of the following statements is false?

• A) The intrinsic value of an option is the value it would have if it expired immediately.
• B) A European option cannot be worth less than its American counterpart.
• C) Put options increase in value as the stock price falls.
• D) A put option cannot be worth more than its strike price.

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Definitions:

Office Park

A collection of office buildings situated on a large plot of land, typically offering a range of facilities and services for the businesses operating within.

Rights Vested

Refers to rights that are securely granted to an individual or entity, and cannot be revoked or amended without consent.

Modify or Rescind

To change, alter, or revoke an agreement or contract either partially or completely.

Incidental Beneficiary

A third party who unintentionally benefits from a contract but has no legal right to enforce the contract terms.