A Decrease in Which of the Following Terms Will Cause

question 56

Multiple Choice

A decrease in which 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:

Medicaid and Medicare

United States government programs providing health coverage; Medicaid is for low-income individuals and families, while Medicare is for people over 65 and some younger individuals with disabilities.

DRGs

Diagnosis-Related Groups; a system for categorizing hospital cases into groups with similar clinical characteristics and resource use, often used for billing and reimbursement purposes.

Ideology

A system of ideas and ideals, especially one that forms the basis of economic or political theory and policy.

Technical Knowledge

Refers to the specialized skills, techniques, and facts individuals have in a specific field or activity.