Which of the Following Is True for a Call Option

question 15

Multiple Choice

Which of the following is true for a call option on a stock worth $50

• A) As a stock's expected return increases the price of the option increases
• B) As a stock's expected return increases the price of the option decreases
• C) As a stock's expected return increases the price of the option might increase or decrease
• D) As a stock's expected return increases the price of the option on the stock stays the same

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Definitions:

Second If-Else Statement

A subsequent conditional statement in a program that executes one block of code if its condition is true, otherwise executes another block of code.

Indentation

The practice of using spaces or tabs at the beginning of lines of code to make the structure and hierarchy clearer.

Equality Operator

A relational operator that checks whether its two operands are equal, usually represented by ==.

Disadvantages

Drawbacks or limitations that might hinder functionality, performance, or applicability in various contexts including software, hardware, or algorithmic designs.