Practice Quiz

FINRA Series 7

Category - Series 7

Start a Study Session Sign up for Question of the Day
When does a call option provide the most value to its holder?
  1. when the underlying stock is extremely volatile
  2. in the month prior to its expiration
  3. when there is a large open interest in that class of option
  4. when the underlying stock price is rising
Explanation
Answer: D - when the underlying stock price is rising. That’s why the holder of this option wants to have a right to “call” the stock.
Was this helpful? Upvote!
Login to contribute your own answer or details
Start a Study Session Sign up for Question of the Day

Top questions

Related questions

Most popular on PracticeQuiz