Which of the Following Is True for a Call Option

question 15

Multiple Choice

Which of the following is true for a call option on a stock worth $50

• A) As a stock's expected return increases the price of the option increases
• B) As a stock's expected return increases the price of the option decreases
• C) As a stock's expected return increases the price of the option might increase or decrease
• D) As a stock's expected return increases the price of the option on the stock stays the same

---

Definitions:

Birth

The act or process of being born; the emergence of a new individual from the body of its parent.

Infancy

The earliest period in a human's life, extending from birth to approximately 2 years of age.

Milestones

Significant markers or events that signify an important achievement or stage in a project, life, or development process.

Personal Experience

An individual's own encounters or events that have taken place in their life, influencing their values, perspectives, and decisions.