the value of a call option increases with all of the following except the value of a call option increases with all of the follo

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zhenek [66]

1 year ago

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the value of a call option increases with all of the following except the value of a call option increases with all of the follo

wing except time to expiration stock price dividend payout interest rate

Business

1 answer:

Papessa [141] · Answer 1 · 2024-09-19T05:13:30+03:00

The value of a call option does not increases with <u>time to maturity</u>. The Option B is correct.

<u></u>

<h3>What Is a Call Option?</h3>

Basically, a call options refers to a financial contracts that give the option buyer the right, but not an obligation to buy a stock, bond, commodity, or other asset or instrument at a specified price within a specific time period.

Investment such as stock, bond or even commodity is called the underlying asset. A call buyer will profits when the underlying asset increases in price. In this context, the value of a call option increases with the stock price, volatility and dividend yield.

Missing options "A. stock price B. time to maturity C. volatility D. dividend yield