A(n) ____ Will Increase the Market Value of a Call

question 49

Multiple Choice

A(n) ____ will increase the market value of a call option.

• A) decrease in the announced dividend amount
• B) decrease in the time to expiration
• C) decrease in the volatility of the underlying stock
• D) increase in the interest rate

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Definitions:

Increases

describes a situation or process where something becomes greater in size, number, or amount.

Decreases

A reduction in size, quantity, or degree of something.

Neuroticism

A personality trait characterized by anxiety, moodiness, worry, envy, and jealousy.

Rational Unconscious

A concept that suggests that the unconscious mind is capable of logical thought and can affect conscious decision making.