Which of the Following Factors Would Tend to Increase the Size

question 50

Multiple Choice

Which of the following factors would tend to increase the size of the premium on an options contract?

• A) The current short-term interest rates are high
• B) The option is near its expiration date
• C) The price volatility of the underlying asset is low
• D) The option is far off its expiration date

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Definitions:

Endogenous Opioid

Natural pain-relieving peptides produced by the body that act on the opioid receptors to reduce pain and induce pleasure.

Exogenous Opioid

Opioid substances introduced into the body from external sources, often for pain management or recreational use.

Metabolic Hormone

Hormones that regulate metabolism, energy storage, and consumption within the body.

Cognitive Impairment

A decline in cognitive functions such as memory, problem solving, and attention, beyond what might be expected from normal aging.