An increase in which of the following would increase the price of a call option on common stock, ceteris paribus?I. Stock price II. Stock price volatility III. Interest rates IV. Exercise price 

A. II and IV only
B. II only
C. I, II, III, and IV
D. I, II, and III only
E. I, III, and IV only


Answer: D

Business

You might also like to view...

Answer the following statements true (T) or false (F)

1.Assume 1990 to be the base year. If by the end of 2004 a country's export price index rose from 100 to 130 while its import price index rose from 100 to 115, its terms of trade would equal 113. 2.Assume 1990 to be the base year. If by the end of 2004 a country's export price index rose from 100 to 140 while its import price index rose from 100 to 160, its terms of trade would equal 120. 3.Assume 1990 to be the base year. If by the end of 2004 a country's export price index rose from 100 to 125 while its import price index rose from 100 to 125, its terms of trade would equal 100. 4.The commodity terms of trade is found by dividing a country's import price index by its export price index. 5.For the commodity terms of trade to improve, a country's export price index must rise relative to its import price index over a given time period.

Business

A(n) _____ can be exchanged for shares of equity at the owner's discretion.?

A. ?debenture B. ?indenture C. ?callable bond D. ?convertible bond E. ?putable bond

Business

Your friend tells you that ABC Mutual Fund can beat the market return and has less risk than the market. Is this possible?

A) In the short-run, yes. In the long-run, no. B) In the short-run, yes. In the long-run, yes. C) In the short-run, no. In the long-run, no. D) In the short-run, no. In the long-run, yes.

Business

A simple interest calculation assumes you reinvest all interest earned in the investment

Indicate whether the statement is true or false

Business