Solved

Which of the Following Statements Is FALSE

Question 21

Multiple Choice

Which of the following statements is FALSE?


A) Put-call parity gives the price of a European call option in terms of the price of a European put,the underlying stock,and a zero-coupon bond.
B) For a given strike price,the value of a call option is higher if the current price of the stock is higher,as there is a greater likelihood the option will end up in-the-money.
C) The value of an otherwise identical call option is higher if the strike price the holder must pay to buy the stock is higher.
D) Because a put is the right to sell the stock,puts with a lower strike price are less valuable.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions