Which of the Following Is True of the Market Price

question 39

Multiple Choice

Which of the following is true of the market price of an options contract over time?

• A)It is set at time 0.
• B)It is fixed over the life of the contract.
• C)It changes based on the market value of the underlying asset.
• D)It increases with time to expiration.
• E)It is based on supply and demand.

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Definitions:

Competitive Advantage

A condition or circumstance that puts a company in a favorable or superior business position compared to its competitors.

Sustainable

The ability to maintain or improve certain processes or states indefinitely without depleting resources or causing harmful effects on the environment or social fabric.

Corporate Strategy

The overarching plan and direction a company adopts to achieve its long-term goals and maintain competitive advantage.

Operations

The day-to-day activities involved in running a business, ensuring it efficiently produces goods and services to meet customer demand.