Which of the Following Statements Is True of American Options

question 390

Multiple Choice

Which of the following statements is true of American options?

• A) The lower the underlying share price, the higher the value of a call option.
• B) The lower the exercise price, the lower the value of a call option.
• C) The longer the time to expiration, the lower the value of a call option.
• D) The greater the interest rate, the lower the value of a call option.
• E) The lower the risk of the underlying security, the lower the value of a call option.

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