An Increase in Which One of the Following Will Have

question 10

Multiple Choice

An increase in which one of the following will have a negative effect on the price of a call option?

• A)option strike price
• B)time remaining to option expiration
• C)underlying stock price
• D)volatility of the underlying stock price
• E)risk-free interest rate

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Definitions:

Number Of Consumers

The total count of individuals in the market willing to purchase a particular good or service.

Clone

In biotechnology, it refers to an organism, cell, or piece of genetic material that is genetically identical to the one from which it was derived; in computing, it describes a replica or copy of a product, software, or hardware.

Price Elasticity

The responsiveness of the quantity demanded of a good or service to a change in its price.

Demand

The volume of goods or services that consumers can and want to buy across a range of prices within a certain period.