According to the Black/Scholes Option Valuation

question 32

Multiple Choice

According to the Black/Scholes option valuation
Model, a call option's value decreases if

• A) interest rates increase as the option approaches expiration
• B) the variability of the stock's return declines and the interest rate decreases
• C) an increase in the price of the stock results in a two for one stock split
• D the option is exercised

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Definitions:

Oppose Immigration

The stance or action of being against the movement of people into a country to live or work.

Complementary Resources

Resources that are used together in the production of a good or service, such that an increase in the price of one leads to a decrease in the supply of the other.

Substitute Resources

Alternative resources that can be used in place of another in the production process, often in response to changes in price.

Domestic-born Workers

Employees who are born in the country where they are working, as opposed to foreign-born workers.