A Decrease in Which of the Following Terms Will Cause

question 56

Multiple Choice

A decrease in which of the following terms will cause an increase in the call value of an option?

• A) Interest rates
• B) Time to maturity
• C) Exercise price
• D) Volatility of the stock

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Definitions:

Hernia

A condition characterized by the protrusion of an organ through the wall of the cavity that normally contains it, often causing pain and swelling.

Protrusion

Something that sticks out or bulges beyond a surface or boundary.

Suffix

A morpheme added at the end of a word to alter its meaning or grammatical function.

Toward

In the direction of or closer to something.