Question
Please mark the only incorrect statement about the determinants of the value of an American call option: a. the lower the exercise price of the
Please mark the only incorrect statement about the determinants of the value of an American call option:
| a. | the lower the exercise price of the call, the higher its premium | |
| b. | the maximum value of the call premium is the stock price plus the strike price | |
| c. | if the stock price declines, then the premium of the call declines | |
| d. | if the stock pays dividends, the higher the dividend the lower the premium |
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Managerial Accounting
Authors: Karen Wilken Braun, Wendy Tietz, Walter Harrison, Rhonda Pyp
1st Canadian Edition
978-0132490252, 132490250, 978-0176223311
