All Else Equal, Call Option Values Are Lower

question 45

Multiple Choice

All else equal, call option values are lower

• A)in the month of May.
• B)for low dividend-payout policies.
• C)for high dividend-payout policies.
• D)in the month of May and for low dividend-payout policies.

---

Definitions:

FICA-OASDI

Refers to the Social Security portion of the Federal Insurance Contributions Act tax, funding Social Security retirement, disability, and survivor benefits.

FICA-OASDI

The Federal Insurance Contributions Act tax for Old-Age, Survivors, and Disability Insurance, which funds Social Security.

FUTA

The Federal Unemployment Tax Act, which imposes a payroll tax on businesses, used to fund state workforce agencies.

FICA-OASDI

The Federal Insurance Contributions Act - Old Age, Survivors, and Disability Insurance tax deducted from employee wages for Social Security and Medicare.