Which of the Following Statements Is FALSE

question 13

Multiple Choice

Which of the following statements is FALSE?

• A)The value of an option generally decreases with the volatility of the share.
• B)The 'intrinsic value' is the amount by which the option is currently in-the-money, or 0 if the option is out-of-the-money.
• C)Because an American option cannot be worth less than its intrinsic value, it cannot have a negative time value.
• D)An American option with a later exercise date cannot be worth less than an otherwise identical American option with an earlier exercise date.

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Definitions:

Firewall

A system for securing the network that supervises and regulates the flow of data entering and leaving according to established security protocols.

Unauthorized Traffic

Network activity or data transfer that has not been permitted, often indicative of a security breach or malicious intent.

Protective Barrier

A physical or electronic means designed to protect objects, information, or areas from unauthorized access or harm.

Extranet

A controlled private network allowing access to partners, vendors, and suppliers or an authorized set of external users.