The Value of a Listed Call Option on a Share

question 23

Multiple Choice

The value of a listed call option on a share is lower when ________.
I. the exercise price is higher
II. the contract approaches maturity
III. the share decreases in value
IV. a share split occurs

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

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Definitions:

Enzyme Activity

The process by which enzymes act as catalysts to enable or accelerate biochemical reactions.

Chemical Digestion

The process of breaking down food into smaller molecules through enzymatic action in the digestive system.

Proteins

Large, complex molecules essential for structure, function, and regulation of the body's cells, tissues, and organs, composed of amino acids.

Denatured

Refers to a structural change in a protein that results in the loss of its biological properties, often due to heat, acid, or other chemical agents.