Which of the Following Is True for European Call and Put

question 15

Multiple Choice

Which of the following is true for European call and put options?

• A) If they have the same strike price, they have the same implied volatility
• B) If they have the same time to maturity, they have the same implied volatility
• C) If they have the same strike price and time to maturity, they have the same implied volatility
• D) None of the above

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Definitions:

SPDR

Specialty financial products known as Spider, they are exchange-traded funds (ETFs) that attempt to mimic the performance of a specific index, such as the S&P 500.

Spider

A nickname for SPDR (Standard & Poor's Depositary Receipts), a type of exchange-traded fund that mimics the performance of the S&P 500.

12b-1 Charges

Fees associated with mutual funds, charged annually for fund distribution and marketing costs, embedded in the fund's expense ratio.

Fund Assets

Financial resources under the control of an investment fund, including cash, securities, and other investments.