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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