In the Valuation of an Option Contract, the Following Statements

Multiple Choice

In the valuation of an option contract, the following statements apply EXCEPT:

A) The value of an option increases with its maturity.
B) There is a negative relationship between the market interest rate and the value of a call option.
C) The value of a call option is negatively related to its exercise price.
D) The value of a call option is positively related to the volatility of the underlying asset.
E) The value of a call option is positively related to the price of the underlying stock.