Holding Everything Else Constant,call Options Are More Expensive in Periods

question 47

True/False

Holding everything else constant,call options are more expensive in periods of high interest rates.

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Definitions:

Revenue Bond

A type of municipal bond supported by the revenue from a specific project or source, rather than general tax revenues.

General-Obligation Bond

A type of municipal bond that is secured by the full faith and credit of the issuing government, including its taxing power to repay the bondholders.

Russell 2000

A gauge that tracks the performance of around 2000 of the smallest American firms listed in the Russell 3000 Index.

S&P 500

A stock market index tracking the performance of 500 of the largest companies listed on stock exchanges in the United States.