An Increase in Which One of the Following Will Have

question 10

Multiple Choice

An increase in which one of the following will have a negative effect on the price of a call option?

• A)option strike price
• B)time remaining to option expiration
• C)underlying stock price
• D)volatility of the underlying stock price
• E)risk-free interest rate

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Definitions:

Credit Balance

The amount that a company or individual owes to creditors; in accounting, it indicates a balance on the right side of a ledger for liability, revenue, or equity accounts.

Closing Entries

Journal entries made at the end of an accounting period to transfer balances from temporary to permanent accounts.