The Value of a Listed Call Option on a Stock

question 89

Multiple Choice

The value of a listed call option on a stock is lower when:
I. The exercise price is higher.
II. The contract approaches maturity.
III. The stock decreases in value.
IV. A stock split occurs.

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

---

Definitions:

Government Entity

An organization or agency owned and operated by the government, serving the public's interests.

Issues Management

Issues management is the process of identifying, assessing, and responding to potential challenges or opportunities that could affect an organization's reputation, operations, or financial performance before they develop into crises.

Issue Life Cycle

The stages an issue goes through from emergence to resolution, impacting public perception and management strategies.

Corporate Relocation

The process of moving a company's operations, headquarters, or a significant part of the business to a new location.