Multiple Choice
According to the Black/Scholes option valuationmodel, a call option's value decreases if
A) interest rates increase as the option approaches expiration
B) the variability of the stock's return declines and the interest rate decreases
C) an increase in the price of the stock results in a two for one stock split
D the option is exercised
Correct Answer:
Verified
Correct Answer:
Verified
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