An increase in the exercise price will increase the value of a call option.

Name: An increase in the exercise price will increase the value of a call option.
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Question

Quizplus · Accepted Answer

An increase in the exercise price (strike price) generally decreases the value of a call option because it becomes less likely that the option will end up in-the-money (where the market price of the underlying asset is above the strike price).

An Increase in the Exercise Price Will Increase the Value