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:

Property Rights

Legal rights to possess, use, and distribute property.

Worker Rights

The entitlements and protections afforded to employees, including fair wages, safe working conditions, and freedom from discrimination.

Representation Gap

The discrepancy or disconnect between the interests and needs of workers and the extent to which they are represented or addressed within the workplace or through collective bargaining.

National Labor Relations Act

A foundational U.S. law enacted in 1935 that protects the rights of employees and employers, to encourage collective bargaining, and to curtail certain private sector labor and management practices.