Multiple Choice
Which of the following increase(s) the time premium of a call option?
I.a market price that exceeds the strike price
II.increasing volatility in the market price of the underlying security
III.decreasing market interest rates
IV.decreasing the time to option expiration
A) II only
B) I and II only
C) III and IV only
D) II and III only
Correct Answer:
Verified
Correct Answer:
Verified
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