The Price of a Call Option Will Be Lower

question 55

Multiple Choice

The price of a call option will be lower,

• A)the higher the interest rates.
• B)the less time to expiration it has.
• C)the lower the strike price is.
• D)the greater the volatility of the stock returns.

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Definitions:

Insurance Expired

The portion of an insurance premium that has been used up during the policy term, representing a cost for the period.

Administrative Facilities

Facilities utilized for administrative purposes, including offices, meeting rooms, and support areas that help in the management and operation of an organization.

Indirect Costs

Costs not directly tied to a specific product, project, or activity, such as utilities, rent, and administrative expenses that support the overall operation.

Factory Equipment Depreciation

This is the process of allocating the cost of factory equipment over its useful life, thereby reducing its value due to wear and tear, or obsolescence.