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.