Both Call and Put Option Premiums Are Affected by the Level

question 107

True/False

Both call and put option premiums are affected by the level of the existing spot price relative to the strike price; for example, a high spot price relative to the strike price will result in a relatively high premium for a call option but a relatively low premium for a put option.

---

Definitions:

Verb

A word used to describe an action, state, or occurrence, forming the main part of the predicate of a sentence.

Route

A way or course taken in getting from a starting point to a destination.

Verb

A part of speech that expresses an action, occurrence, or a state of being.

Exhibits

Displays or presentations of items, often in museums or galleries, intended for public viewing.