The ____, the Higher the Call Option Premium, Other Things

question 40

Multiple Choice

The ____, the higher the call option premium, other things being equal.

• A) lower the existing price of the security relative to the exercise price
• B) lower the variability of the security's market price
• C) longer the maturity of the option
• D) A and B

---

Definitions:

Runout Tolerances

Specifies the limits within which the variation of a surface's location and the feature's circularity must be contained as it rotates around a datum axis.

Datum Feature

A physical feature of a part that acts as a reference for measurement and geometry during machining or inspection processes.

RFS

Requirement for the feature size; a specification in geometric tolerancing where size is a factor.

Runout Tolerance

A type of geometric tolerance that controls the variation of a feature's surface as it rotates about a datum axis.