Which One of the Following Should Decrease the Value of a Call

question 330

Multiple Choice

Which one of the following should decrease the value of a call option?

• A) Increasing the volatility of the overall stock market.
• B) Increasing the range of expected returns on an underlying security.
• C) Increasing the time period until the option expires.
• D) Decreasing the exercise price of the call option.
• E) Decreasing the market value of the underlying security.

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Definitions:

Explicit Prejudice

Openly expressed negative attitudes or beliefs toward a group or its members based on their perceived characteristics.

Group Polarization

The phenomenon where discussions within a group lead to the adoption of more extreme positions or attitudes than the initial inclinations of its members.

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Social Facilitation

The tendency for people to perform tasks better when they are in the presence of others.