Which of the Following Will Decrease the Value of a Call

question 97

Multiple Choice

Which of the following will decrease the value of a call option?
I.a decrease in the exercise price
II.a decrease in the value of the underlying security
III.an increase in the risk-free rate
IV.an increase in the time to expiration

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

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