Options on Small Stocks Normally Have Higher Premiums Than Options

question 3

True/False

Options on small stocks normally have higher premiums than options on large stocks because small stocks typically are more volatile.

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Definitions:

Dikes

Vertical or steeply inclined sheet-like bodies of igneous rock that cut through sedimentary rock layers.

Intrusive Rock

Igneous rock formed from magma that cools and solidifies within the crust of the planet, creating large crystal grains.

Extrusive Rock

Igneous rock that forms on the Earth's surface as lava cools and solidifies.

Igneous Rock

Stone created by magma or lava hardening as it cools.