Multiple Choice
The value of a call option increases as the time to expiration increases because:
A) the exercise price continually decreases.
B) the opportunity increases for the stock price to surpass the exercise price.
C) the dividends accumulate while waiting to be paid.
D) the option can be repeatedly exercised.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q16: The major difference between options on real
Q28: Executive stock options are issued with the
Q29: An investor purchased both a put and
Q31: Adding warrants as a "sweetener" to bonds
Q33: At expiration a call option will have
Q33: What is the value of a convertible
Q34: Stocks that have more volatile price changes
Q39: The value of a put at expiration
Q46: The value of a call option at
Q60: A callable bond gives the issuer a