Other things equal, the price of a stock call option is positively correlated with the following factors except

A. the stock price.
B. the time to expiration.
C. the stock volatility.
D. the exercise price.


D. the exercise price.

The exercise price is negatively correlated with the call option price.

Business

You might also like to view...

Explain the meaning of the terms contingent liabilities and provisions as they relate to U.S. GAAP and IFRS?

Business

Managerial accountants should carefully analyze all except which of the following when considering using either absorption costing statements or variable costing statements?

a. noncontrollable costs b. pricing products c. controllable costs d. which one will make the organization look better on paper

Business

What term refers to how the value of one country's currency changes in relation to the value of other currencies?

A. currency expectation B. currency exchange C. currency fluctuation D. value exchange E. value fluctuation

Business

Colin signs a note “payable to the order of Debit Bank.” The bank indorses the note in blank and negotiates it to Equity Funds, which sells it to Financial Investments. Liability associated with the transfer of the note from Equity to Financial is

A. none of the choices. B. contractual. C. signature. D. warranty.

Business