A $1 Decrease in a Call Option's Exercise Price Would

question 37

Multiple Choice

A $1 decrease in a call option's exercise price would result in a(n) __________ in the call option's value of __________ one dollar.

• A) increase; more than
• B) decrease; more than
• C) decrease; less than
• D) increase; less than
• E) increase; exactly

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Definitions:

Expenses

Costs incurred in the process of earning revenue, typically reflected in the income statement to calculate net income.

Financial Information

Data relating to the financial status, performance, and changes in financial position of an entity.

Revenues

The cumulative income derived from transactions involving goods or services tied to the main business functions.

Expenses

Costs incurred by a business in the process of earning revenue, which are not directly tied to the production of goods or services.