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Which of the Following Statements Is INCORRECT

Question 16

Multiple Choice

Which of the following statements is INCORRECT?


A) American and European calls on a non-dividend stock always have the same value.
B) American and European puts on a non-dividend stock always have the same value.
C) An American put may be exercised early when the stock gets close enough to zero.
D) An American put is more likely to be exercised after the stock goes ex-dividend,rather than before the stock goes ex-dividend.
E) An American call is more likely to be exercised before the stock goes ex-dividend,rather than after the stock goes ex-dividend.

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