Which of the Following Will Decrease the Value of a Call

question 97

Multiple Choice

Which of the following will decrease the value of a call option?
I.a decrease in the exercise price
II.a decrease in the value of the underlying security
III.an increase in the risk-free rate
IV.an increase in the time to expiration

• A)II only
• B)I and II only
• C)III and IV only
• D)I, II, and IV only
• E)I, II, and III only

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Definitions:

Influence Tactics

Strategies or approaches used to persuade or direct others' behavior in order to achieve one's objectives.

Referent Power

A form of influence based on the ability to attract others and build loyalty through charisma, likability, or status.

Influence Tactics

Strategies or methods used by individuals to change the perception, opinion, or behavior of others to achieve a desired outcome.

Bases of Power

The sources or origins of authority and influence that leaders or entities possess, including aspects like expert power, legitimate power, and coercive power.