I Hold a Long Position in a Call Option on IBM

question 16

Multiple Choice

I hold a long position in a call option on IBM stock.If the price of IBM goes down and its volatility goes up,then the value of my call option

• A)Increases.
• B)Decreases.
• C)Is unaffected.
• D)May increase,decrease,or stay the same.

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Definitions:

Role Playing

A method of learning or therapy involving acting out roles, typically to develop social skills or resolve psychological issues.

Fantasy-Prone

A personality trait or inclination towards immersive and vivid imaginative experiences, often leading to extensive fantasy lives.

Dissociative Identity Disorder

A condition characterized by the presence of two or more distinct personality states or identities within a single individual, previously known as multiple personality disorder.

Multiple Personalities

Now referred to as Dissociative Identity Disorder, it's a psychological condition characterized by the presence of two or more distinct personality states.