When Does a Change in the Value of a Call

question 60

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 very near the strike price.
• D) Changes in call value always come close to matching changes in stock price.

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Definitions:

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