Consider a One-Year, At-The-Money Call Option on Taggart Stock

question 16

Multiple Choice

Consider a one-year, at-the-money call option on Taggart stock. The effect on the price of this call option of an increase in the volatility from 25% to 40% is closest to:

• A) $0.70 increase
• B) $1.70 decrease
• C) $2.30 increase
• D) $2.80 increase

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The ability to manipulate ideas and concepts in a verbal or symbolic way, often used in logical reasoning.

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Guidelines in linguistics that dictate how words and phrases should be arranged to form meaningful sentences.

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A grammar term indicating that an action or state occurred in the time before the present.

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A developmental disorder characterized by difficulties in learning and using language due to no apparent cause, unrelated to any other cognitive or developmental issues.