Solved

The Value of an Option (Both Call and Put) Is

Question 62

Multiple Choice

The value of an option (both call and put) is positively related to:
I. volatility of the underlying stock price
II. time to expiration
III. risk-free rate


A) I and II only
B) II and III only
C) I and III only
D) III only

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q1: Briefly explain what is meant by put-call

Q45: A put option gives the owner the

Q57: In June 2007, an investor buys a

Q58: Which of the following investors would be

Q60: If the stock makes a dividend payment

Q61: The owner of a regular exchange-listed call-option

Q64: Buying a stock and a put option,

Q65: The value of a put option at

Q66: A call options gives its owner the

Q67: Figure-4 depicts the: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2525/.jpg" alt="Figure-4 depicts