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

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 the above.
Brand: Quizplus
Rating: 4.8 (37 reviews)

Question

Quizplus · Accepted Answer

The elasticity of a stock call option, which measures the percentage change in the option's price relative to the percentage change in the underlying stock's price, is always greater than one because options provide leverage.

The Elasticity of a Stock Call Option Is Always