As a Stock's Market Price Increases, the Value of Its

question 51

True/False

As a stock's market price increases, the value of its call option will increase also.

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Definitions:

Present Value

Present value denotes the current valuation of a prospective sum of money or sequence of cash flows, based on a predefined rate of return.

Savings Accounts

Deposit accounts held at financial institutions that provide principal security and a modest interest rate.

Deposit

The act of placing funds into a bank account or a sum of money that is held in custody for future transactions.

Simple Interest

The calculation of interest paid only on the original amount of money invested, not on the interest it has already earned.