Assuming All Else Equal,the Value of an In-The-Money Call Increases

question 69

Multiple Choice

Assuming all else equal,the value of an in-the-money call increases when the
I.time to expiration increases.
II.stock price increases.
III.risk-free rate of return increases.
IV.volatility of the price of the underlying stock increases.

• A)I and III only
• B)II,III,and IV only
• C)I,III,and IV only
• D)I,II,and III only
• E)I,II,III,and IV

---

Definitions:

Inbreeding

The mating of closely related individuals, increasing the chance of offspring inheriting recessive or detrimental traits.

Genetic Bottleneck

An event that drastically reduces the size and genetic diversity of a population, influencing future generations' genetic variation.

Population Size

The sum of people living in a specified region during a specific time period.

Antagonistic Pleiotropy

A genetic situation where a single gene controls more than one trait, but those traits have opposing effects on an organism's fitness.