Question
Which of the following is true? When the volatility decreases, A. the values of European calls decrease. B. the value of a call option decreases,
Which of the following is true? When the volatility decreases,
| A. | the values of European calls decrease. | |
| B. | the value of a call option decreases, whereas the value of a put option increases. | |
| C. | the value of a call option increases, whereas the value of a put option decreases. | |
| D. | the values of American calls increase. |
Consider an exchanged-traded call option contract to buy 100 shares with a strike price of $30 and maturity in 7 months. What is the new exercise price when there is a 6-for-1 stock split?
| A. | $6 | |
| B. | $150 | |
| C. | $30 | |
| D. | $5 |
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
0135811600, 978-0135811603
