CIMAPRO19-P03-1 Exam - Topic 7 Question 104 Discussion

Actual exam question for CIMA's CIMAPRO19-P03-1 exam

Question #: 104
Topic #: 7

[All CIMAPRO19-P03-1 Questions]

Which of the following will increase the value of a call option?

AAn increase in the strike price.

BAn increase in the time to expiry.

CA decrease in the volatility of the share.

DA decrease in the market value of the share.

Show Suggested Answer

Suggested Answer: B

by Alison at Apr 10, 2026, 11:33 PM

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Fernanda

17 days ago

I disagree, A would actually decrease the value.

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Raina

23 days ago

B is definitely correct! More time means more chance to profit.

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Annamae

1 month ago

I’m a bit confused about the relationship between market value and call options, but I feel like a decrease in the share price would lower the call option's value.

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Annamae

1 month ago

If I recall correctly, a decrease in volatility usually hurts the value of options, so that one should definitely not increase the value of a call.

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Carmen

2 months ago

I remember practicing a similar question, and I think increasing the strike price would actually decrease the value of a call option.

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Elli

2 months ago

I think an increase in the time to expiry could help a call option, but I'm not entirely sure how much it affects the value.

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