Other Things Equal,the Price of a Stock Call Option Is

question 14

Multiple Choice

Other things equal,the price of a stock call option is negatively correlated with the following factors

• A)the stock price.
• B)the time to expiration.
• C)the stock volatility.
• D)the exercise price.
• E)A,B,and C.

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Definitions:

Expectancy Theory

A motivational theory suggesting that individuals are motivated to perform if they believe their efforts will lead to desired performance and rewards.

Outcome Valences

The perceived desirability of the outcomes resulting from certain behaviors or decisions, influencing motivation and decision-making.

P-to-O Expectancy

The perceived probability that one's effort will lead to desired performance outcomes, often discussed in the context of motivation theories.

Job Performance

The degree to which an employee executes their job duties and responsibilities efficiently and effectively.