Other things equal, the price of a stock call option is negatively correlated with which of the following factors?
A) The stock price
B) The time to expiration
C) The stock volatility
D) The exercise price
E) The stock price, time to expiration, and stock volatility

Question

Quizplus · Accepted Answer

The price of a stock call option is negatively correlated with the exercise price. As the exercise price increases, all else being equal, the value of the call option decreases because the option becomes less likely to finish in the money.

Other Things Equal, the Price of a Stock Call Option