The elasticity of a stock call option is always
A) greater than one.
B) smaller than one.
C) negative.
D) infinite.
E) none of these.

Name: The elasticity of a stock call option is always A) greater than one. B) smaller than one. C) negative. D) infinite. E) none of these.
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Question

Quizplus · Accepted Answer

The elasticity of a stock call option is always greater than one because the percentage change in the option's price is greater than the percentage change in the underlying stock's price.

The Elasticity of a Stock Call Option Is Always