The Premium on an Existing Call Option Should ____ When

question 72

Multiple Choice

The premium on an existing call option should ____ when there is a reduction in the expected short-term volatility of the stock price.

• A) be negative
• B) decline
• C) increase
• D) be unaffected
• E) A and B

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Definitions:

First Lady

The title used in some countries for the wife of the head of state or, in some cases, a woman occupying the comparable position without being married to the head of state.

Social Crusader

An individual who ardently advocates for and engages in activities aimed at promoting social change and addressing societal injustices, often focusing on issues like poverty, inequality, and human rights.

Federal Government

A system of government where power is divided between a national (federal) government and various regional governments.

Working-Class

A social group consisting of people employed in lower-tier jobs, often in manual labor or skilled trade occupations, and who receive wages rather than salaries.