Which of the Following Events Is Likely to Decrease the Value

question 34

Multiple Choice

Which of the following events is likely to decrease the value of call options on the common stock of GCC Company?

• A) An increase in GCC's stock price.
• B) An increase in the exercise price of the option.
• C) An increase in the amount of time until the option expires.
• D) An increase in the risk-free rate.
• E) GCC's stock price becomes more risky (higher variance).

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Definitions:

Sleep Stages

The different phases of sleep that a person goes through in a cycle, including REM (rapid eye movement) and various degrees of non-REM sleep.

Eye Movements

The voluntary or involuntary movement of the eyes, which can include blinking, and movements to follow visual objects or read.

Sleep Stages

The different phases of sleep that a person goes through in a typical night, including REM and multiple stages of non-REM sleep, each having distinct characteristics.

REM

Rapid Eye Movement, a phase of sleep characterized by fast and random movement of the eyes, associated with dreaming.