Which of the Following Statements Is FALSE

question 93

Multiple Choice

Which of the following statements is FALSE?

• A)Put-call parity gives the price of a European call option in terms of the price of a European put, the underlying share, and a zero-coupon bond.
• B)Because a put is the right to sell the share, puts with a lower exercise price are less valuable.
• C)For a given exercise price, the value of a call option is higher if the current share price is higher, as there is a greater likelihood the option will end up in-the-money.
• D)The value of an otherwise identical call option is higher if the exercise price the holder must pay to buy the share is higher.

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