An increase in value of option leads to low present ... - Solved MCQs & Answer

500FinanceMedium

An increase in value of option leads to low present value of exercise cost only if it has____________?

AHigh volatility

BInterest rates are low

CInterest rates are high

DLow volatility

Correct answer

C. Interest rates are high

Explanation

Interest rates are high is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

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