Which One of the Following Variables Influences the Value of Call

question 40

Multiple Choice

Which one of the following variables influences the value of call options?I) Level of interest ratesII) Time to expiration of the optionIII) Dividend yield of underlying stockIV) Stock price volatility

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

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Definitions:

Digestive System

The complex series of organs and glands responsible for the digestion and absorption of nutrients, as well as the elimination of waste products.

Bolus

A tiny ball-shaped lump of material, particularly of food chewed right before it's swallowed.

Esophagus

The muscular tube that connects the throat (pharynx) with the stomach, conveying food and liquids.

Digestive System

An assembly of organs that collaborate to transform food into energy and essential nutrients to nourish the whole body.