An Increase in Which of the Following Would Increase the Price

question 51

Multiple Choice

An increase in which of the following would increase the price of a call option on common stock,ceteris paribus?
I. Stock price
II. Stock price volatility
III. Interest rates
IV. Exercise price

• A)II only
• B)II and IV only
• C)I,II,and III only
• D)I,III,and IV only
• E)I,II,III,and IV

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Definitions:

Verbal

Relating to words or the use of speech in communication as opposed to non-verbal forms like gestures or facial expressions.

Written

Refers to the expression of language in a textual medium, through the use of characters or symbols.

Non-audible Communication

Communication that occurs through means other than spoken words, such as body language, facial expressions, or written texts.

Facial Expressions

The movements of the facial muscles that convey emotional states, intentions, or social information to others.