The Value of a Call Option Is Negatively Related To

question 52

Multiple Choice

The value of a call option is negatively related to:
I. Exercise price
II. Risk-free rate
III. Time to expiration

• A) I only
• B) II only
• C) III only
• D) II and III only

---

Definitions:

Numbers

Numbers are mathematical objects used to count, measure, and label.

Percentages

Numerical values expressed as fractions of 100, used to describe proportions or ratios.

Dangling Modifiers

A word or phrase that modifies a word not clearly stated in the sentence, often leading to confusing or unintended meanings.

Grin

A broad smile indicating amusement, happiness, or satisfaction.