Call Options on XYZ Corporation's Common Stock Trade in the Market.Which

question 27

Multiple Choice

Call options on XYZ Corporation's common stock trade in the market.Which statement regarding XYZ Corporation's options is true,other things held constant?

• A)The price of these call options is likely to rise if XYZ's stock price rises.
• B)The higher the strike price on XYZ's options, the higher the option's price will be.
• C)Assuming the same strike price, an XYZ call option that expires in 1 month will sell at a higher price than one that expires in 3 months.
• D)If XYZ's stock price stabilizes (becomes less volatile), then the price of its options will increase.

---

Definitions:

Decreases Carbon Dioxide

Refers to the reduction of CO2 levels in a given environment, often sought in efforts to combat global warming.

Inadequate Oxygenation

A condition where the body or a region of the body does not receive sufficient oxygen to meet its needs.

Flap-like Structure

A physical formation resembling a flap, used to describe parts of organisms that can move back and forth or serve as a cover.

Larynx

The hollow muscular organ forming an air passage to the lungs and holding the vocal cords; commonly known as the voice box.