An Increase in Which One of the Following Will Decrease

question 74

Multiple Choice

An increase in which one of the following will decrease the value of a call option?

• A) Interest rate
• B) Time to expiration
• C) Volatility of stock price
• D)Exercise price

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Definitions:

Positive Reinforcer

A stimulus that, when presented after a response, increases the likelihood of that response being repeated.

Negative Reinforcer

An unpleasant or aversive stimulus that, when removed or avoided following a behavior, increases the likelihood of that behavior being repeated.

Delicious Food

Food that is highly pleasing to the taste, often characterized by rich flavors and textures.

Operant Conditioning

A system of education that modifies the potency of an action by applying reinforcements or punitive measures.