A Forward-Start Option May Be Viewed as Path-Independent Because

question 11

Multiple Choice

A forward-start option may be viewed as path-independent because

• A) The features of the option when it comes to life depend on the price of the underlying at that point but not on the path taken to reach that price.
• B) The payoff of the forward-start on its maturity date does not depend on any features of the price path of the underlying from the date of purchase of the option.
• C) A forward start option always starts irrespective of the path taken to the forward start date.
• D) Only the strike price of the option is unknown at the time of entering into the option.

---

Definitions:

Font Size

A measure that determines the height of characters in typography, typically expressed in points (pt), pixels (px), ems, or percent.

Easy To Read

Pertains to content presented in a straightforward, accessible manner, making it understandable without unnecessary complexity.

Business Documents

Written records that are used in a business context, including reports, memos, contracts, and business plans.

Personal Letters

written communications typically sent between individuals, focusing on personal topics rather than official or business matters.