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    Derivatives Study Set 1
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    Exam 7: Options Markets
  5. Question
    The Premium of an Option Is
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The Premium of an Option Is

Question 1

Question 1

Multiple Choice

The premium of an option is


A) The price of the option.
B) The value of the right but not the obligation to undertake a purchase or sale of the underlying asset.
C) Is always non-negative.
D) All of the above.

Correct Answer:

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