Vidyalelo
Commerce · Q652

Financial Management

Graduate and Post Graduate · Commerce · question 652

Q652

If current price increases from lower to higher then an

A.
option value equal to one
B.
option value will increase
Answer
C.
option value will decrease
D.
option value equal to zero

Answer: Option B

Solution

Answer: Option B
Solution:
If current price increases from lower to higher then an option value will increase. The current price, also known as the market value, is the price at which goods are currently being sold in the market.