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:

Individualist

A belief or social theory favoring freedom of action for individuals over collective or state control, emphasizing the importance of individual rights and responsibilities.

Authoritarian

Characterizing a mode of governance or political system in which individual freedom is held as subordinate to the power or authority of the state, with little political pluralism.

Globalization

A process leading to the increasing interconnectedness of different parts of the world through economic, cultural, technological, and political exchanges.

Continental Europe

Continental Europe refers to the main landmass of Europe, distinguishing it from the British Isles and other peripheral islands, focusing on countries connected directly to mainland Europe.