An increase in which one of the following will have a negative effect on the price of a call option?
A)option strike price
B)time remaining to option expiration
C)underlying stock price
D)volatility of the underlying stock price
E)risk-free interest rate

Question

Quizplus · Accepted Answer

An increase in the option strike price makes it less likely that the option will end up in-the-money at expiration, which negatively affects the price of a call option. Higher strike prices mean the underlying stock has to increase more for the option to be profitable, reducing the call option's value.

An Increase in Which One of the Following Will Have