An increase in which of the following will cause a call option to decline in value?
A) Volatility
B) Underlying asset price
C) Striking price
D) Interest rates

Name: An increase in which of the following will cause a call option to decline in value? A) Volatility B) Underlying asset price C) Striking price D) Interest rates
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Question

Quizplus · Accepted Answer

An increase in the striking price makes the call option less attractive, as it becomes more expensive to exercise, leading to a decline in its value.

An Increase in Which of the Following Will Cause a Call