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

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Definitions:

Weapons Effect

The phenomenon where the mere presence of a weapon can increase the likelihood of aggression or violence.

Violent Media

Media content that depicts acts of physical aggression by one character against another or against oneself.

Viewer Aggression

The tendency for individuals to display aggressive behaviors after being exposed to violent content in media or entertainment.

Causality

The relationship between cause and effect, where one event (the cause) leads to the occurrence of another event (the effect).