The Premium on an Existing Call Option Should ____ When

question 18

Multiple Choice

The premium on an existing call option should ____ when the price of the underlying stock decreases.

• A)be negative
• B)decline
• C)increase
• D)be unaffected
• E)be negative AND decline

---

Definitions:

Decreased Immune Response

A reduction in the effectiveness of the body's immune system to fight off infections and diseases.

Chronic Diseases

Long-lasting medical conditions that are often progressive and require ongoing management and treatment.

General Adaptation Syndrome (GAS)

A conceptual framework that outlines how the body responds to stress over short and long periods, divided into three phases: alarm, resistance, and exhaustion.

Chronic Stressors

Persistent stress factors that cause long-term stress and can lead to significant health issues, including mental and physical health problems.