Which of the Following Statements Is False

question 51

Multiple Choice

Which of the following statements is false?

• A) Resources representing supplies and prepaid items are classified in governmental funds as Nonspendable Fund balance.
• B) Capital Projects, debt service and permanent funds do not typically record budgets.
• C) Debt service and permanent funds do not record encumbrances.
• D) Principal of permanent funds is classified as Committed Fund Balance

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Definitions:

Call Option's Delta

A measure of how much the price of a call option is expected to change based on a one unit change in the price of the underlying asset.

Black-Scholes OPM

A model used to estimate the price of European-style options, leveraging factors such as underlying asset price, strike price, volatility, and time to expiration.

Instantaneous Risk-free Rate

The theoretical rate of return of an investment with zero risk at any given moment, used in certain financial models.

Protective Put

A strategy in investing that involves buying a put option for an asset that one already owns to hedge against potential losses in the asset's price.