An Increase in Exercise Price Results in an Equal Increase

question 5

True/False

An increase in exercise price results in an equal increase in the call option's price.

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Definitions:

Mean

The arithmetic average of a set of numbers, obtained by dividing the sum of the numbers by the count of numbers.

P(Z > 3.00)

The probability that a value Z, on a standard normal distribution, is greater than 3.00.

Area

In geometry, the measurement of the extent of a two-dimensional surface or shape, expressed in square units.

P(Z < 3.00)

A statistical expression indicating the probability of a standard normal variable being less than 3.00.