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:

Commercial Substance

A concept in accounting that indicates a transaction significantly alters the economic position or cash flows of an entity.

Straight-Line Depreciation

A strategy for dividing the cost of a substantial asset through its operational life in even yearly portions.

Productivity

The measure of efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

Machinery

Industrial or commercial equipment designed to perform specific tasks, often part of the manufacturing or production process.