As the underlying stock's price increased, the call option valuation function's slope approaches
A)zero.
B)one.
C)two times the value of the stock.
D)one-half times the value of the stock.
E)infinity.

Question

Quizplus · Accepted Answer

As the stock price increases the value of the call option increases in price one for one with the stock price.The option is very likely to be exercised.

As the Underlying Stock's Price Increased, the Call Option Valuation