The Value of a Call Option Is Positively Related To

question 25

Multiple Choice

The value of a call option is positively related to:

• A) Underlying stock price.
• B) Time to expiration
• C) Exercise price.
• D) a and b
• E) b and c

---

Definitions:

Inventory Turnover Rate

A metric that measures how quickly a company sells its inventory within a given period, calculated by dividing cost of goods sold by average inventory.

Office Furniture

Items used in an office setting for the purpose of work, including desks, chairs, filing cabinets, and bookshelves.

Marketable Securities

Liquid financial instruments that can be quickly converted into cash at a reasonable price, such as stocks and bonds.

Days' Sales in Receivables

A financial ratio that measures the average number of days it takes a company to collect payment after a sale has been made.