题目内容

Compare an American call with a strike of 50 which expires in 90 days to an American call on the same underlying asset which has a strike of 60 and expires in 120 days. The underlying asset is selling at 55. Consider the following statements:Statement1: "The 50 strike call is in-the-money and the 60 strike call is out-of-the-money."Statement 2: "The time value of the 60 strike call, as a proportion of the 60 strike call's premium, exceeds the time value of the 50 strike call as a proportion of the 50 strike call's premium."Are the statements most likely correct or incorrect?

A. Both statements are correct
B. Statement 1 is incorrect, but Statement 2 is correct
C. Statement 1 is correct, but Statement 2 is incorrect

查看答案

搜索结果不匹配？点我反馈

更多问题

With respect to American calls, which of the following statements is most accurate?

American calls should be exercised early if the underlying has reached its expected maximum price.
B. American calls should be exercised early if the underlying has a lower expected return than the risk- free rate.
C. American calls should be exercised early only if there is a dividend or other cash payment on the underlying.

查看答案

The effect of dividends on a stock on early exercise of a put is to:

A. make early exercise less likely.
B. have no effect on early exercise.
C. make early exercise more likely.

查看答案

Prior to expiration, the maximum value of an Americana call option and an American put option, respectively, is closest to the: American call option ?American put option?

A. Exercise price, Exercise price
B. Exercise price, Underlying price
C. Underlying price, Exercise price
D. Underlying price, Underlying price

查看答案

An investor is long an in-the-money American call option. Would this option most likely ever be exercised early?

A. No.
B. Yes, if its time value is high enough.
C. Yes, if it pays a high enough dividend.

查看答案

A. Both statements are correct B. Statement 1 is incorrect, but Statement 2 is correct C. Statement 1 is correct, but Statement 2 is incorrect

With respect to American calls, which of the following statements is most accurate?

The effect of dividends on a stock on early exercise of a put is to:

Prior to expiration, the maximum value of an Americana call option and an American put option, respectively, is closest to the: American call option ?American put option?

An investor is long an in-the-money American call option. Would this option most likely ever be exercised early?

A. Both statements are correct
B. Statement 1 is incorrect, but Statement 2 is correct
C. Statement 1 is correct, but Statement 2 is incorrect