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Which of the following will increase the value of a call option?
Suggested Answer: B
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20 comments · newest first
BU
Bulah
1 month ago
D is definitely not it. Lower market value hurts call options.
JA
Jamal
1 month ago
C is wrong. Less volatility means less chance for big moves.
DI
Dion
2 months ago
Definitely B! Longer expiry gives flexibility.
JA
Jamal
2 months ago
I feel like A could be misleading. Higher strike price usually hurts call options.
TR
Tracie
2 months ago
Agreed, B makes sense. Time value is crucial for options.
SA
Samira
2 months ago
I think B is the right answer. More time means more chance to profit.
AN
Angelyn
2 months ago
B) is the only right answer here, for sure!
TO
Toi
2 months ago
Surprised that people think A) could help, it actually hurts!
CH
Christene
3 months ago
C) is a big no, lower volatility means less value.
RI
Rickie
3 months ago
Totally disagree, A) won't increase the value at all.
AN
Annice
3 months ago
B) An increase in the time to expiry definitely helps!
NA
Nan
3 months ago
Not sure about C, volatility usually helps options, right?
JA
Jacquelyne
3 months ago
B is the only one that makes sense here.
BR
Brendan
4 months ago
Surprised that people think A could help!
FE
Fernanda
5 months ago
I disagree, A would actually decrease the value.
RA
Raina
5 months ago
B is definitely correct! More time means more chance to profit.
AN
Annamae
6 months 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.
AN
Annamae
6 months 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.
CA
Carmen
6 months ago
I remember practicing a similar question, and I think increasing the strike price would actually decrease the value of a call option.
EL
Elli
6 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.