Which of the Following Statements Is FALSE

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.