According to the Black/Scholes Option Valuation

question 37

Multiple Choice

According to the Black/Scholes option valuation
Model, the value of a call option increases if

• A) the option approaches expiration
• B) the return on the stock is more certain
• C) interest rates on a discounted bond decline
• D) the standard deviation of the stock's return increases

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Definitions:

Justification

A reason or argument that explains why a particular action, belief, or statement is reasonable or necessary.

Premise

A prior assertion or claim from which another conclusion is drawn or follows logically.

Simp

Slang for someone who demonstrates excessive sympathy or attention towards another person, often without reciprocation.

Taut

An assertion that holds truth as a result of its inherent logic or by necessity.