Which of the Following Changes Will Decrease the Value of a Call

question 88

Multiple Choice

Which of the following changes will decrease the value of a call option?

• A) An increase in stock price
• B) An increase in strike price
• C) An increase in stock price volatility
• D) An increase in interest rates

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Definitions:

Military Spending

Government expenditure on defense forces and activities, including salaries, equipment, and facilities.

Productivity Growth

The rate at which the efficiency of production increases, often measured by the output per unit of labor input over time.

Health Care Per Capita

The total expenditure on health care divided by the population size, indicating the average spending on health care per person.

Rich Nations

Countries with high levels of wealth, income, and economic productivity per capita.