The Value of a Call Increases When: I

question 10

Multiple Choice

The value of a call increases when: I.the time to expiration increases.
II) the share price increases.
III) the risk-free rate of return increases.
IV) the volatility of the price of the underlying share increases.

• A)I and III only.
• B)II, III, and IV only.
• C)I, III, and IV only.
• D)I, II, and III only.
• E)I, II, III, and IV.