All Else the Same, the Value of an American Call

question 201

Multiple Choice

All else the same, the value of an American call option decreases __________________.

• A) with increases in the underlying asset price
• B) with decreases in the exercise price
• C) with decreases in the risk-free interest rate
• D) the less out-of-the-money the option becomes
• E) with increases in the time to expiration

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