All Else Equal, Call Option Values Are ________ If the ________

question 54

Multiple Choice

All else equal, call option values are ________ if the ________ is lower.

• A)higher; share price
• B)higher; exercise price
• C)lower; dividend payout
• D)lower; share volatility

---

Definitions:

Single Life Annuity

An annuity that provides regular payments during the annuitant's lifetime but ends upon their death.

Annuity Contract

A legal agreement in which an individual makes a series of payments in exchange for receiving regular disbursements, either immediately or in the future.

Expected Return

The anticipated profit or loss from an investment over a specified period, based on historical data or probability-weighted projections.

Traditional IRA

An individual retirement account in the United States allowing individuals to save for retirement with tax-free growth or on a tax-deferred basis.