There Are Call Options on the Common Stock of XYZ

question 7

Multiple Choice

There are call options on the common stock of XYZ Corporation. Which of the following best describes the factors affecting the value of these call options?

• A) The price of the call options is likely to rise if XYZ's stock price rises.
• B) The higher the strike price on the call option, the higher the call option price.
• C) Assuming the same strike price, a call option which expires in one month will sell for a higher price than a call option which expires in three months.
• D) All of the answers above are correct.
• E) None of the answers above is correct.

---

Definitions:

Linking

The process of creating connections between various pieces of data, documents, or programs to facilitate easy access to related information.

Importing

The process of bringing data from an external source into a software application or system.

External File

A file stored outside of the current working document or database, which can be accessed or imported into the document.

PDF File

A Portable Document Format file, designed to present documents consistently across multiple devices and platforms, keeping the formatting intact.