- CFA Exams
- CFA Level I Exam
- Study Session 16. Derivatives
- Reading 49. Basics of Derivative Pricing and Valuation
- Subject 8. Factors that Affect the Value of an Option
CFA Practice Question
Which of the following statements describing options is FALSE?
A. A call option will be exercised only if the market value of the underlying asset is more than the exercise price.
B. A put option holder's profit increases when the value of the underlying asset increases.
C. A put option will be exercised only if the market value of the underlying asset is less than the exercise price.
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