The ____, the Higher the Call Option Premium, Other Things

question 40

Multiple Choice

The ____, the higher the call option premium, other things being equal.

• A) lower the existing price of the security relative to the exercise price
• B) lower the variability of the security's market price
• C) longer the maturity of the option
• D) A and B

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Definitions:

Zygote

A single cell formed through fertilization.

Implantation

The stage of pregnancy at which the embryo attaches to the wall of the uterus to begin development.

Prenatal Development

The process of growth and development within the womb from conception until birth.

Germinal

Relating to the earliest phase of embryonic development, in the first two weeks post-conception when the zygote begins to divide and grow.