The Value of a Call Option Increases as the Time

question 4

Multiple Choice

The value of a call option increases as the time to expiration increases because:

• A) the exercise price continually decreases.
• B) opportunity increases to surpass exercise price.
• C) dividends accumulate while waiting to be paid.
• D) the option can be repeatedly exercised.

---

Definitions:

Free Contraceptives

Programs or policies that provide birth control methods at no cost to individuals, aiming to promote public health and personal autonomy.

Births to Teenagers

The incidence or rate of young women, typically ages 13-19, becoming mothers.

AIDS Epidemic

A global public health crisis characterized by the widespread outbreak of Acquired Immunodeficiency Syndrome (AIDS), primarily caused by the human immunodeficiency virus (HIV).

Advisory Panel

A group of experts gathered to provide advice and recommendations on specific issues to organizations or governments.