Which One of These Will Increase Both the Value of a Call

question 60

Multiple Choice

Which one of these will increase both the value of a call and the value of a put?

• A)Decrease in the exercise price
• B)Increase in the stock price
• C)Decrease in the interest rate
• D)Increase in stock volatility
• E)Decrease in time to expiration

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Definitions:

Inequality

Refers to the uneven distribution of resources or opportunities among different groups or individuals within a society.

Gini Coefficient

A measure of income distribution or inequality within a population, ranging from 0 (perfect equality) to 1 (perfect inequality).

Equal Distribution

A concept referring to a scenario where resources, wealth, or opportunities are shared evenly among all participants or members of a society.

Human Capital

The collective skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.