1. is worth: A. more B. less

Call option will : A. increase B. decrease

option period: A.increase B. decrease

underlying stock: A. decrease B. increase

Have to pay: A. less B. more

exercise price: A. more B. less

Aa Aa E 3. Factors that affect the value of options Understanding how different factors affect the value of options is the first step to understanding option pricing models When all other things are held constant, an option on an extremely volatile share of stock is worth than an option on a less volatile share of stock. As the exercise price of a call option increases, the price of the call option will the call option price will increase. The However, as the length of the option period call option price will decrease when the price of the underlying stock When is a call option considered to be out-of-the-money? O When the exercise price exceeds the current stock price O When the exercise price is below the current stock price Suppose Victor bought an option to buy the stock of Company X at an exercise price of $52.00 per share. The price of the option was $6.50 in April, and Company X's stock was trading at the price of $45.00 per share. Ashley bought a call option for the same company on the same day as Victor, but the exercise price of the option was $50.00 per share. If a other things are the same, the price that Ashley paid for the option would have been O Exactly $6.50 O Less than $6.50 O More than $6.50