Both Call and Put Option Premiums Are Affected by the Level

question 43

True/False

Both call and put option premiums are affected by the level of the existing spot price relative to the strike price; for example, a high spot price relative to the strike price will result in a relatively high premium for a call option but a relatively low premium for a put option.

---

Definitions:

Training Strategy

A planned approach to developing skills and knowledge, aimed at achieving specific learning outcomes or organizational goals.

Development

The process of growth, progress, or improvement in skills, knowledge, or organizational efficiency over time.

Knowledge

Information, understanding, or skill that one obtains through experience or education.

Restructuring

The act of reorganizing the legal, ownership, operational, or other structures of a company to make it more profitable or better organized for its present needs.