The Premium on an Existing Call Option Should ____ When

question 4

Multiple Choice

The premium on an existing call option should ____ when there is an increase in the volatility of the underlying stock .

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

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Definitions:

Feeding Schedule

An organized plan for feeding an individual, such as a baby or pet, at specific times and quantities.

Mothers and Infants

Refers to the primary care dyad in human development, emphasizing the critical role of early maternal care in infant health and psychological development.

Crying Frequency

The rate or number of times an individual cries within a given timeframe, often used to assess well-being or emotional state in infants and adults.

Cambridge, England

A historic city in the United Kingdom, known for its prestigious university and rich academic heritage.