The Premium on an Existing Call Option Should ____ When

question 72

Multiple Choice

The premium on an existing call option should ____ when there is a reduction in the expected short-term volatility of the stock price.

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

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Definitions:

Public Land

Land owned by the government rather than by private individuals, often set aside for public use, conservation, or administration.

Congressional Lobbying

The act of attempting to influence decisions made by officials in the government, most often legislators or members of regulatory agencies, in the United States.

Ranching Outposts

Remote or strategically located stations or settlements primarily involved in the raising of livestock and cattle.

Dry-Farming Techniques

Agricultural methods that involve the cultivation of crops without irrigation in regions with limited moisture, focusing on conservation of soil moisture.