The Value of a Call Option ________ with the Risk-Free

question 6

Multiple Choice

The value of a call option ________ with the risk-free rate,and the value of a put option ________ with the risk-free rate.

• A)increases,increases
• B)decreases,decreases
• C)increases,decreases
• D)decreases,increases
• E)increases,does not change

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Definitions:

Variance

A measure of the dispersion of a set of data points around their mean value, indicating how spread out the data points are.

Dependent Samples

Two or more groups of data where the subjects in one group are related or matched with the subjects in the other groups, often used in before-and-after studies.

Variable

Any characteristic, number, or quantity that can be measured or counted; a variable may vary from one observation to another.

Subscript D

Represents a variable or an element in a sequence, denoted with a letter "D" in a subscript position to indicate a specific instance or version of the variable.