Other Things Equal,the Price of a Stock Call Option Is

question 1

Multiple Choice

Other things equal,the price of a stock call option is positively correlated with the following factors except

• A) the stock price.
• B) the time to expiration.
• C) the stock volatility.
• D) the exercise price.
• E) none of these.

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Definitions:

Specific Power of Attorney

A legal document that grants an agent the authority to act on behalf of the principal in specific matters or transactions.

Agency Agreement

A contract creating a fiduciary relationship whereby the first party consents that the actions of a second party bind them in relations with a third party.

Principal

The main party to a transaction or contract who has authorized an agent to act on their behalf.

Apparent Agency

A legal concept where a person appears to be, or is mistakenly believed to be, authorized to act as an agent for another party.