All Other Things Held Constant,premiums on Both Put and Call

question 81

Multiple Choice

All other things held constant,premiums on both put and call options will increase when the

• A) exercise price increases.
• B) volatility of the underlying asset increases.
• C) term to maturity decreases.
• D) futures price increases.

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Obedience

The act of following orders or instructions from someone in authority, often without questioning them.

Expert Power

The influence one possesses as a result of their expertise, skill, or knowledge, which persuades others to follow their lead.

Informational Power

Power derived from the possession, control, or access to information that is needed or valued by others.

Reward Power

Reward power is a form of social influence based on the ability to control the allocation of rewards valued by others, thereby modifying their behavior in a desired direction.