Which one of the following will cause the value of a call to decrease?
A) lowering the exercise price
B) increasing the time to expiration
C) increasing the risk-free rate
D) lowering the risk level of the underlying security
E) increasing the stock price

Question

Quizplus · Accepted Answer

Lowering the risk level of the underlying security decreases the potential for large price movements, reducing the call option's value.

Which One of the Following Will Cause the Value of a Call