Question
Which of the following statements is correct, holding other things constant, for non-dividend paying XYZ Corporation's traded call options? Explain your answer. Group of answer
Which of the following statements is correct, holding other things constant, for non-dividend paying XYZ Corporation's traded call options? Explain your answer.
Group of answer choices
A -The higher the strike price on XYZ's options, the higher the option's price will be.
B-Assuming the same strike price, an XYZ call option that expires in one month will sell at a higher price than one that expires in three months.
C-If XYZ's stock price stabilizes (becomes less volatile), then the price of its options will increase.
D-The price of these call options is likely to rise if XYZ's stock price rises.
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