When Does a Change in the Value of a Call

question 67

Multiple Choice

When does a change in the value of a call option come the closest to matching the price change in a share of stock?

• A) When the stock is priced far above the strike price
• B) When the stock is priced far below the strike price
• C) When the stock is priced near zero
• D)Changes in call value always come close to matching changes in stock price.

---

Definitions:

World's Oldest Shoe

An archaeological find that represents the earliest known footwear, dating back to around 5500 B.C., discovered in the Areni-1 cave in Armenia.

Armenia

A landlocked country located in the South Caucasus region of Eurasia, known for its rich history, cultural heritage, and as one of the earliest Christian civilizations.

Wine

An alcoholic beverage made from fermented grapes or other fruits, varying greatly in flavor and style.

Breast-Feeding

The act of feeding a baby with milk directly from the mother's breast, providing essential nutrients and antibodies.