The Option Premium Is

question 127

Multiple Choice

The option premium is

• A) the market price of the option.
• B) the amount by which the stock price is expected to move before the option expires.
• C) the fee charged by the options exchanges for executing transactions.
• D) the difference between the strike price and the underlying price of the security.

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Definitions:

Method Call

The process of invoking a method's functionality in a program, allowing it to execute its tasks.

Object

In programming, an instance of a class that may contain attributes and methods to simulate entities with specific characteristics and behaviors.

Class

A template or blueprint for creating objects, defining what attributes and methods they have in object-oriented programming.

Method

A function defined in a class that usually performs a specific operation or action, taking zero or more arguments.