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Which of the Following Is True for a Call Option

Question 15

Multiple Choice

Which of the following is true for a call option on a stock worth $50


A) As a stock's expected return increases the price of the option increases
B) As a stock's expected return increases the price of the option decreases
C) As a stock's expected return increases the price of the option might increase or decrease
D) As a stock's expected return increases the price of the option on the stock stays the same

Correct Answer:

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