Which of the Following Changes Will Decrease the Value of a Call

question 88

Multiple Choice

Which of the following changes will decrease the value of a call option?

• A) An increase in stock price
• B) An increase in strike price
• C) An increase in stock price volatility
• D) An increase in interest rates

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Definitions:

Dependability of Delivery

The reliability with which a company or supply chain delivers products or services to its customers in the promised time frame.

Competing Companies

Businesses that operate in the same market or industry and vie for the same customer base, market share, or resources.

Just-in-time Inventory Systems

An inventory strategy companies use to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, reducing inventory costs.

Responsibility

involves the duty or obligation to perform or complete a task, with an inherent accountability for the successful completion and outcomes.