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Management · Q667

Financial Management

Graduate and Post Graduate · Management · question 667

Q667

Stock option is considered more valuable in situation when stock have

A.
price hike in market
B.
market stability
C.
not volatile
D.
highly volatile
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Stock option is considered more valuable in situation when stock have highly volatile. A stock option gives an investor the right, but not the obligation, to buy or sell a stock at an agreed upon price and date.