Which of the Following Statements Is FALSE

question 7

Multiple Choice

Which of the following statements is FALSE?

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

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Definitions:

Native Americans

Indigenous peoples of the United States, including both the mainland and Alaska, with diverse cultures, languages, and histories.

British North America

Historical term for the territories of the British Empire in mainland North America, now mainly constituting Canada.

Spanish North America

The territories in the Americas that were once part of the Spanish Empire, including what are now Mexico, the Southwestern United States, and other regions.

French North America

The territories in North America that were once colonized by France, including parts of Canada, Louisiana, and the Caribbean, significantly influencing the culture and demographics of these regions.