Question: The higher the call option premium, other things being equal, _ _ _ _ _ _ _ _ _ _ _ _ _ _ the

The higher the call option premium, other things being equal, ______________ the existing price of the security relative to the exercise price.
a. lower
b. higher
c. no impact

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!