Examveda
Examveda

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: Option D

Solution(By Examveda Team)

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.

This Question Belongs to Commerce >> Financial Management

Join The Discussion

Related Questions on Financial Management

Investment is the _______________.

A. net additions made to the nation’s capital stocks

B. person’s commitment to buy a flat or house

C. employment of funds on assets to earn returns

D. employment of funds on goods and services that are used in production process