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

Which of the following will increase the value of a call option?
B) An increase in the time to expiry.
A) An increase in the strike price.
C) A decrease in the volatility of the share.
D) A decrease in the market value of the share.

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?

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Suggested Answer: B

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

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Annice
10 hours ago
B) An increase in the time to expiry definitely helps!
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Nan
6 days ago
Not sure about C, volatility usually helps options, right?
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Jacquelyne
11 days ago
B is the only one that makes sense here.
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Brendan
16 days ago
Surprised that people think A could help!
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Fernanda
2 months ago
I disagree, A would actually decrease the value.
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Raina
2 months ago
B is definitely correct! More time means more chance to profit.
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Annamae
3 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.
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Annamae
3 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.
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Carmen
3 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
3 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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