The value of a call option increases with all of the following except ________.
A)share price
B)time to maturity
C)volatility
D)dividend yield

Question

Quizplus · Accepted Answer

The value of a call option is negatively affected by increased dividend yield because it decreases the value of the underlying asset and therefore the potential profit from exercising the option. Therefore, all choices except D (dividend yield) increase the value of a call option.

The Value of a Call Option Increases with All of the Following