Which One of the Following Will Cause the Value of a Call

question 39

Multiple Choice

Which one of the following will cause the value of a call to decrease?

• A)Lowering the risk level of the underlying security
• B)Increasing the time to expiration
• C)Increasing the risk-free rate
• D)Lowering the exercise price
• E)Increasing the stock price

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Definitions:

Rights

Legal, social, or ethical principles of freedom or entitlement; the fundamental norms concerning what people are allowed to do.

Company

A legal entity formed by a group of individuals to engage in and operate a business commercially or industrially.

Technological Innovation

The introduction of new technologies or the improvement of existing technologies to create new products, services, or processes.

Cloud Source LLC

Assuming it’s a real entity, it would refer to a company specializing in providing cloud-based solutions and services. If not, then NO.