When does a call option provide the most value to its holder?
A)when the underlying stock is extremely volatile
B)in the month prior to its expiration
C)when there is a large open interest in that class of option
D)when the underlying stock price is rising

Question

Quizplus · Accepted Answer

when the underlying stock price is rising. That's why the holder of this option wants to have a right to "call" the stock.

When Does a Call Option Provide the Most Value to Its