Which of the Following Features Increase(s) the Value of a Call

question 70

Multiple Choice

Which of the following features increase(s) the value of a call option?

• A)A high interest rate
• B)A long time to maturity
• C)A higher volatility of the underlying stock price
• D)A high interest rate, a long time to maturity, and a higher volatility of the underlying stock price

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Definitions:

Genetics

Genetics is the branch of biology that studies genes, heredity, and genetic variation in living organisms, explaining how traits and characteristics are passed from one generation to the next.

Environment

The surrounding or conditions in which a person, animal, or plant lives or operates.

Muscular Development

The process of growth and strengthening of muscle fibers through physical activity and nutrition.

Physical Development

The biological growth and changes in the human body over time, including motor skills, muscle and bone growth, and the maturation of organ systems.