Question

Would you expect a $1 increase in a call option’s exercise price to lead to a decrease in the option’s value of more or less than $1?.

Answer 1

The call price will decrease by less than $1.

• The call price( also known as" redemption price") is the price at which the issuer of a callable security has the right to buy back that security from an invest or creditor.
• The call price is generally the seen value of the bond, plus a fresh chance. The quantum of the call price and the dates during which it can be legislated are specified in the indenture agreement associated with the bond.

• Also, par value still matters for a callable common
• stock
• the call price is generally either par value or a small fixed chance over par value.

Learn more about call price here: brainly.com/question/17151706

#SPJ4