The value of a call option is negatively related to the
A)exercise price.
B)risk-free rate.
C)time to expiration.
D)risk-free rate and time to expiration.

Name: The value of a call option is negatively related to the A)exercise price. B)risk-free rate. C)time to expiration. D)risk-free rate and time to expiration.
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Question

Quizplus · Accepted Answer

The value of a call option decreases as the exercise price increases, because the option becomes less likely to be in-the-money.

The Value of a Call Option Is Negatively Related to the