The value of a call increases as the price of the underlying stock increases.

Name: The value of a call increases as the price of the underlying stock increases.
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Question

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The value of a call option increases as the price of the underlying stock increases because the option gives the holder the right to buy the stock at a predetermined price, and if the stock's market price is higher, the call option becomes more valuable.

The Value of a Call Increases as the Price of the Underlying