Which One of the Following Will Cause the Value of a Call

question 72

Multiple Choice

Which one of the following will cause the value of a call to decrease?

• A) lowering the exercise price
• B) increasing the time to expiration
• C) increasing the risk-free rate
• D) lowering the risk level of the underlying security
• E) increasing the stock price

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Definitions:

Inhibited Sexual Response

A condition characterized by a significant decrease in or absence of sexual interest and arousal which is experienced as distressing by the individual.

Pedophiles

Adults who are sexually attracted to prepubescent children, a condition considered a psychiatric disorder.

Paranoid Personality Disorder

A mental disorder characterized by paranoia and a pervasive, long-standing suspiciousness and generalized mistrust of others.

Sexual Sadists

Individuals who experience sexual arousal and gratification from inflicting pain, suffering, or humiliation on others.