The price of a stock call option is __________ correlated with the stock price and __________ correlated with the strike price.
A) positively; positively
B) negatively; positively
C) negatively; negatively
D) positively; negatively
E) not; not

Question

Quizplus · Accepted Answer

The price of a stock call option is positively correlated with the stock price (as the stock price increases, the value of the call option generally increases) and negatively correlated with the strike price (as the strike price increases, the value of the call option generally decreases).

The Price of a Stock Call Option Is __________ Correlated