Which One of These Will Increase Both the Value of a Call

question 60

Multiple Choice

Which one of these will increase both the value of a call and the value of a put?

• A)Decrease in the exercise price
• B)Increase in the stock price
• C)Decrease in the interest rate
• D)Increase in stock volatility
• E)Decrease in time to expiration

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Definitions:

Origin

The starting point or initial position in a coordinate system or mathematical equation.

Center

The point that is equally distant from every point on the circumference of a circle or sphere; by extension, a balanced or neutral position in discussions or analysis.

Price Level

The overall mean price of all current goods and services in the economic setting.

Curve

In economics, a graphical representation showing the relationship between two varying quantities, such as supply and demand.