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:

Directive

A directive in management or leadership refers to instructions or orders given to subordinates meant to guide actions or tasks.

Supportive

Providing encouragement or assistance, often fostering an environment conducive to growth, learning, or development.

Task-Oriented Leaders

Leaders who focus on the tasks that need to be accomplished in order to meet certain goals or standards.

Challenging Goals

Objectives set by individuals or teams that are difficult to achieve but are pursued in order to motivate higher performance and personal or group development.