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    Money Banking and Financial Markets Study Set 2
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    Exam 9: Derivatives: Futures, Options, and Swaps
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    Considering a Call Option, If the Price of the Underlying
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Considering a Call Option, If the Price of the Underlying

Question 54

Question 54

Multiple Choice

Considering a call option, if the price of the underlying asset decreases:


A) The intrinsic value of the option decreases.
B) The intrinsic value of the option increases.
C) The strike price decreases.
D) The value of the option increases.

Correct Answer:

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