In the Valuation of an Option Contract,the Following Statements Apply

question 36

Multiple Choice

In the valuation of an option contract,the following statements apply except

• A) The value of an option increases with its maturity.
• B) There is a negative relationship between the market interest rate and the value of a call option.
• C) The value of a call option is negatively related to its exercise price.
• D) The value of a call option is positively related to the volatility of the underlying asset.
• E) The value of a call option is positively related to the price of the underlying stock.

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The wages paid to workers directly involved in the manufacturing or production of goods or services.

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A hard, fibrous structural material produced by trees and other plants, used in construction, furniture, and as a fuel source.