Which of the following factors would not affect the value of a call option?
A) Decrease in interest rates
B) Change in price of underlying
C) Change in the risk of the underlying
D) New call option written on underlying stock
E) Increase in the dividend payments on the underlying

Question

Quizplus · Accepted Answer

New call options being written on the underlying stock does not affect the value of existing call options. The value of a call option is primarily influenced by factors such as interest rates, the price of the underlying asset, its volatility (or risk), and dividend payments, but not by the issuance of new options on the same underlying stock.

Which of the Following Factors Would Not Affect the Value