GE stock has a current market value of ($15.) A call option in GE stock has a

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GE stock has a current market value of $$15.$ A call option in GE stock has a strike price of $$11$ and sells for

$$6.$ Which statement is false?

a. The time value of the option is $$2.$

b. The call option could be hedging a company’s investment in GE stock.

c. The intrinsic value of the option is $$4.$

d. If the market price of GE stock falls, the option will be less valuable.

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Advanced Accounting

ISBN: 978-1618531513

3rd Edition

Authors: Susan S. Hamlen

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Question Posted: May 27, 2024 02:05 AM

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GE stock has a current market value of ($15.) A call option in GE stock has a

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Advanced Accounting

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