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

---

Definitions:

Complete Bed Bath

A method of bathing individuals who are bedridden or unable to bathe themselves, involving washing the entire body while in bed.

Behind-The-Ear Hearing Aid

A type of hearing aid designed to fit behind the ear, amplifying sound for individuals with hearing impairments.

Cerumen

A natural substance produced in the ear canal that protects the ear by trapping dirt and repelling water.

Bobby Pin

A small metal or plastic clip used to hold hair in place, typically consisting of two flexible prongs with one prong being straight and the other one ridged.