The Value of an Option (Both Call and Put) Is

question 62

Multiple Choice

The value of an option (both call and put) is positively related to:
I. volatility of the underlying stock price
II. time to expiration
III. risk-free rate

• A) I and II only
• B) II and III only
• C) I and III only
• D) III only

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Definitions:

Homeowners

Individuals who own their residences, possessing both the dwelling and the land it sits on.

Time Series Data

A sequence of data points collected or recorded at successive time intervals, often used for forecasting future trends.

Line Chart

A line chart is a graphical representation that displays information as a series of data points called 'markers' connected by straight line segments, often used to visualize trends over time.

Line Chart

A type of chart used to visualize data points connected by straight line segments, often used to display trends over time.