Which of the following statements is not consistent with options characteristics

Question

Which of the following statements is not consistent with options characteristics?

A. Option values cannot be negative.

B. A call option price cannot exceed the stock price.

C. The most a put can ever be worth is the strike price.

D. A European call option is more valuable than an American call option.

A. Option values cannot be negative.

B. A call option price cannot exceed the stock price.

C. The most a put can ever be worth is the strike price.

D. A European call option is more valuable than an American call option.

Explanation / Answer

D. A European call option is more valuable than an American call option.

The value of european option and american option are same and the value of european option is equal to that of the american option.

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