Which of the following increases the value of a call option?
A) Interest rates decline.
B) The strike price decreases.
C) The underlying becomes less risky.
D) The price of the underlying decreases.

Question

Quizplus · Accepted Answer

A decrease in the strike price of a call option makes it more likely that the option will be in the money at expiration, thereby increasing its value.

Which of the Following Increases the Value of a Call