Multiple Choice
Why does the value of a call option increase as the interest rate increases?
A) The stock seller must pay the call owner more interest.
B) The present value of the exercise price is reduced.
C) As interest rates increase, stock prices increase.
D) Interest rate increases reduce the option value.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q33: At expiration a call option will have
Q34: A call option has an exercise price
Q35: Which one of the following statements is
Q36: Which of the following statements is true
Q37: A call option will have the highest
Q39: The value of a put at expiration
Q40: If you sell a put option,your maximum
Q41: The conversion ratio for a convertible bond
Q42: If you feel strongly that a stock
Q43: A put and a call both have