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.

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Definitions:

Optic Nerve

A cranial nerve that transmits visual information from the retina to the brain.

Choroid

A layer of the eye between the retina and the sclera, rich in blood vessels, supplying nutrients to the eye's inner parts.

Retina

The inner layer of the eye sensitive to light, where the conversion of light images to nerve signals that are sent to the brain occurs.

Ciliary Body

A ring-shaped tissue in the eye that connects the iris to the choroid, responsible for controlling the shape of the lens and producing aqueous humor.