D. 7.69 percentE 8.26 percent16. An increase in which of the following would increase the price of a call option on commonstock, all else equal?L Stock priceI1. Stock price volatilityIIL. Interest ratesIV. Exercise priceA II onlyB. II and IV onlyC. I, II, and III onlyD. 1, 1IL and IV onlyE. I, II, III, and IV

Question
Asked Nov 1, 2019
D. 7.69 percent
E 8.26 percent
16. An increase in which of the following would increase the price of a call option on common
stock, all else equal?
L Stock price
I1. Stock price volatility
IIL. Interest rates
IV. Exercise price
A II only
B. II and IV only
C. I, II, and III only
D. 1, 1IL and IV only
E. I, II, III, and IV
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D. 7.69 percent E 8.26 percent 16. An increase in which of the following would increase the price of a call option on common stock, all else equal? L Stock price I1. Stock price volatility IIL. Interest rates IV. Exercise price A II only B. II and IV only C. I, II, and III only D. 1, 1IL and IV only E. I, II, III, and IV

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A call option is direct proportional to the stock volatility in the market. if the volatility increases, the market prices also go&...

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