Which of the Following Changes, Everything Else Held Constant, Will

question 83

Multiple Choice

Which of the following changes, everything else held constant, will increase the value of a call option?

• A) The value of the underlying asset becomes more volatile
• B) The price of the underlying asset goes down
• C) Getting closer to the expiration date (the passage of time)
• D) A higher strike price

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Definitions:

Class Interval

The range of values within which data points are grouped together in the creation of a frequency distribution.

Midpoint

The central point in a class interval.

Class Interval

A range of values in a dataset that is used to organize data into categories or groups for frequency distribution analysis.

Frequency Distribution

The representation, either in graphical or tabular format, of how often each distinct value occurs in a set of data.