# Suppose the general level of interest rates in the economy rises. What effect would this have on...

## Question:

Suppose the general level of interest rates in the economy rises. What effect would this have on call premiums?

## Call Option:

The "call option" states an arrangement between seller and purchaser in which the purchaser is empowered with the right to purchase the underlying asset at the specified maturity date at a pre-decided price.

## Answer and Explanation: 1

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View this answerCertain factors that influence option pricing are the stock's volatility, underlying stock price, time to expiration period, dividend yield, and...

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Chapter 2 / Lesson 5The best business decisions are the most informed ones. This lesson outlines how leaders can perform a systematic options analysis to better inform their decisions.

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