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Which of the following statements about options is false? The price of the option is less volatile than the price of the underlying stock option

Which of the following statements about options is false?

  • The price of the option is less volatile than the price of the underlying stock
  • option prices are generally higher the longer the time till the option expires
  • for call options, the lower the strike price relative to the stock underlying price, the more the call option is worth
  • prior to expiration, an expiration, an american option (call or put) may have higher value than an equivalent european option.
  • for put options, the higher the strike price relative to the stocks underlying prices, the more the put is worth

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