Which of the Following Statements Is False

Which of the following statements is false?

A) The option price is more sensitive to changes in volatility for at-the-money options than it is for in-the-money options.
B) A share of stock can be thought of as a put option on the assets of the firm with a strike price equal to the value of debt outstanding.
C) In the context of corporate finance, equity is at-the-money when a firm is close to bankruptcy.
D) Because the price of equity is increasing with the volatility of the firm's assets, equity holders benefit from a zero-NPV project that increases the volatility of the firm's assets.