Which of the following characteristics of a call option has an inverse (i.e., negative) relation with the value of the option?
A) Exercise price of the option.
B) Market value of the underlying asset.
C) Volatility of the price of the underlying asset.

Question

Quizplus · Accepted Answer

The value of a call option decreases as the exercise price increases, because a higher exercise price means it's less likely that the option will end up in-the-money (profitable to exercise).

Which of the Following Characteristics of a Call Option Has