Which of the Following Statements Is False

question 41

Multiple Choice

Which of the following statements is false?

• A) The option delta, Δ, has a natural interpretation: it is the change in the price of the stock given a $1 change in the price of the option.
• B) Because a leveraged position in a stock is riskier than the stock itself, this implies that call options on a positive beta stock are more risky than the underlying stock and therefore have higher returns and higher betas.
• C) Only one parameter input for the Black-Scholes formula, the volatility of the stock price, is not observable directly.
• D) Because a stock's volatility is much easier to measure (and forecast) than its expected return, the Black-Scholes formula can be very precise.

Recognize the importance of early childhood behavior and parental reporting in diagnosing conduct disorder.

Examine cognitive processing models explaining aggressive behavior in children.

Understand physiological responses associated with stress and aggression in children diagnosed with conduct disorder.

Understand the classifications and examples of mood disorders.