Which of the following statements is most correct?
A) If the underlying asset does not pay a dividend, it does not make sense to exercise a call option prior to its expiration date.
B) Call options generally sell at a price less than their exercise value.
C) If a stock becomes riskier (more volatile), call options on the stock are likely to decline in value.
D) Answers b and c are correct.
E) None of the answers above is correct.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is most correct?
A) If the underlying asset does not pay a dividend, it does not make sense to exercise a call option prior to its expiration date.
B) Call options generally sell at a price less than their exercise value.
C) If a stock becomes riskier (more volatile), call options on the stock are likely to decline in value.
D) Answers b and c are correct.
E) None of the answers above is correct.

Which of the Following Statements Is Most Correct