An Option Premium Is a Positive Function Of

question 495

Multiple Choice

An option premium is a positive function of:

• A) Time to expiry
• B) The volatility of the price of the underlying commodity
• C) The moneyness of the option
• D) All of the above

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Definitions:

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to standardize and simplify transactions across state lines.

Proper Presentment

The correct or formal presentation of a document for acceptance or payment, such as a check.

Accommodation Party

is an individual who signs a negotiable instrument on behalf of another party, guaranteeing payment without receiving personal benefit.

Maker

A person who has promised to pay a set sum to the holder of a promissory note or certificate of deposit.