Which of the Following Statements Is FALSE

question 45

Multiple Choice

Which of the following statements is FALSE?

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

---

Definitions:

Normal Standards

Predetermined benchmarks or criteria that are set to measure efficiency or performance levels in various business operations.

Production Difficulties

Challenges or obstacles encountered during the process of manufacturing or producing goods.

Direct Labor Standard

A predefined measure of the amount of labor time that is considered necessary to produce one unit of output.

Cost Standards

Predetermined costs that serve as a benchmark for evaluating the actual performance and budgeting of a company.