Which of the Following Statements Is FALSE

question 30

Multiple Choice

Which of the following statements is FALSE?

• A) Because an American option cannot be worth less than its intrinsic value, it cannot have a negative time value.
• B) An American option with a later exercise date is of more worth than an otherwise identical American option with an earlier exercise date.
• C) The value of an option generally decreases with the volatility of the stock.
• D) The investor holding a short position in an option has an obligation; he or she takes the opposite side of the contract to the investor who holds the long position.

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Definitions:

Ignite

Often used in a technological or business context to denote the start or launch of projects, ideas, innovations, or high-energy events aimed at stimulating interest and activity.

Electrical Fire

A fire caused by electrical faults, such as short circuits, overloaded electrical outlets, or old wiring, posing significant risk of damage and injury.

Li-ion Batteries

Rechargeable batteries known for their high energy density and used in portable electronics and electric vehicles.

Explode

In the context of digital information, to explode means to decompress or unpack compressed data or files to their original form.