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:

Indicators

Quantifiable measures used to assess the performance, level, or condition of something, often used in contexts such as economics, health, and education.

Ideology

A system of ideas, values, and beliefs that influences how people perceive and interact with the world around them.

Social Stratification

The division of society into levels, classes, or castes, where individuals and groups are classified based on factors like wealth, income, race, education, and power.

Systemic Discrimination

A form of discrimination that is embedded in the policies, practices, and procedures of organizations or systems, leading to unequal opportunities or outcomes for certain groups.