a. In Section 21-3 we calculated the risk (beta) of a six-month call option on Google stock

Question:

a. In Section 21-3 we calculated the risk (beta) of a six-month call option on Google stock with an exercise price of $430. Now repeat the exercise for a similar option with an exercise price of $400. Does the risk rise or fall as the exercise price is reduced?

b. Now calculate the risk of a one-year call on Google stock with an exercise price of $430. Does the risk rise or fall as the maturity of the option lengthens?

Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...