Correct answer: C

For two calls on the same non-dividend-paying stock with the same maturity:

• A lower strike call must have a higher price, so c1 > c2 is true.
• Since the stock price is $14:
  • Intrinsic value of c1 = max(14 - 11, 0) = $3
  • Intrinsic value of c2 = max(14 - 14, 0) = $0
  • So the intrinsic value difference is exactly $3, making B true.
• The spread value cannot exceed the strike difference, so c1 - c2 <= 3 is true.

The false statement is C because the lower-strike call does not necessarily have greater time value. In fact, the higher-strike call often has greater time value because more of the lower-strike call’s price is already captured by intrinsic value.