The Value of Call Options, All Else Being Equal, Is

question 94

Multiple Choice

The value of call options, all else being equal, is less when there is a greater:

• A)share price
• B)exercise price
• C)degree of volatility of the underlying asset
• D)time to expiry.
• E)None of these are correct.

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Definitions:

Liquidity Ratios

Financial metrics that measure a company's ability to meet its short-term obligations using its most liquid assets.

Balanced Scorecard

A strategic planning and management system used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organizational performance against strategic goals.

Mission and Vision

Statements that articulate a company's purpose and aspirations, guiding its strategy, goals, and organizational culture.