Multiple Choice
The ________ is fixed for the life of the option. All other factors equal, the lower the strike price, the ________ the price for a call option. For put options, the ________ the exercise price, the higher the option price.
A) strike price; lower; higher
B) exercise price; higher; lower
C) strike price; higher; higher
D) market price; lower; lower
Correct Answer:

Verified
Correct Answer:
Verified
Q48: Consider the "cash and carry trade" where
Q49: The _ of an option, at any
Q50: An option buyer can realize the value
Q51: The theoretical futures price depends on the
Q52: _ on the underlying asset tend to
Q53: The _ is the sum of the
Q55: According to the arbitrage arguments, what information
Q56: Consider the "reverse cash and carry trade"
Q57: To show how to calculate the hedge
Q58: Factors influence the price of an option