A Decrease in Which One of the Following Terms Will

question 78

Multiple Choice

A decrease in which one of the following terms will cause an increase in the call value of an option?

• A) Interest rates
• B) Time to maturity
• C) Exercise price
• D)Volatility of the stock

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Definitions:

Balanced Equation

A chemical equation in which the number of atoms for each element in the reaction and the total charge are the same on the reactants side and the products side.

HCl

Hydrochloric acid, a strong corrosive acid that is a colorless or slightly yellow liquid when pure.

Balanced Equation

A chemical equation where the number of atoms for each element, and the total charge, are the same on both the reactants and products sides.

Fe2O3

Iron(III) oxide, a reddish-brown solid also known as rust, used in various applications such as painting and in the synthesis of iron.