Selling a Call Option Is Generally More Valuable Than Exercising

question 32

Multiple Choice

Selling a call option is generally more valuable than exercising the option because of the option's:

• A) riskless value.
• B) intrinsic value.
• C) standard deviation.
• D) exercise price.
• E) time premium.

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Definitions:

Ely Cathedral

A historic Anglican cathedral in Ely, Cambridgeshire, England, famed for its intricate Gothic architecture and the unique Octagon tower.

York Cathedral

Also known as York Minster, it is one of the largest and most magnificent Gothic cathedrals in Northern Europe, located in York, England.

Salisbury Cathedral

A prominent example of Early English Gothic architecture, known for having the tallest church spire in the United Kingdom and housing one of the four original copies of the Magna Carta.

Old Testament Kings

Rulers mentioned in the Old Testament of the Bible, such as David and Solomon, who were significant for their leadership and contributions to Jewish history.