Which One of the Following Statements Is NOT True

question 49

Multiple Choice

Which one of the following statements is NOT true?

• A) The value of a call option can never be negative.
• B) The value of a call option can never be more than the value of the underlying asset.
• C) The value of a call option can never be worth less than the current value of the asset minus present value of the strike price.
• D) The value of a call option can never be worth more than the strike price.

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Definitions:

Chain of Command

The chain of command is a system in an organization that defines the hierarchical line of authority and communication from top leadership to lower-ranking employees.

Span-of-control

The number of direct reports a manager or supervisor has, influencing the structure and management effectiveness of an organization.

Unity-of-command Principle

A management principle stating that each employee should receive orders from only one superior to avoid confusion and conflict.

Organisation Structures

The hierarchical arrangement of lines of authority, communications, rights, and duties within a company that determines how roles, power, and responsibilities are assigned, controlled, and coordinated.