Which of the Following Statements Is FALSE

question 34

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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