Which of the Following Statements Is Correct

question 101

Multiple Choice

Which of the following statements is correct?

• A) call and put options increase in price if the exercise price is increased
• B) call and put options increase in price if the volatility of the underlying asset is decreased
• C) call and put options increase in price if the time to expiry is increased
• D) call and put options increase in price if the opportunity cost of funds is increased

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Definitions:

Income Statement

A financial report that shows a company's revenues, expenses, and profit over a specific period of time.

Expense

Costs incurred by a business in the process of earning revenue, often categorized into operating and non-operating expenses.