题目内容

The value of a European call option is inversely related to the:

A. exercise price.
B. time to expiration.
C. volatility of the underlying.

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The table below shows three European call options on the same underlying:&Time to Expiration&Exercise PriceOption 1 &3 months &＄100Option 2 &6 months &＄100Option 3&6 months &＄105The option with the highest value is most likely:

A. Option 1.
B. Option 2.
C. Option 3.

The value of a European put option can be either directly or inversely related to the:

A. exercise price.
B. time to expiration.
C. volatility of the underlying.

A European put option on a dividend- paying stock is most likely to increase if there is an increase in:

A. carrying costs.
B. the risk- free rate.
C. dividend payments.

Assume the probability of bankruptcy for the underlying asset is high. Compared to the price of an American put option on the same underlying asset, the price of an equivalent European put option will most likely be:

A. lower.
B. higher.
C. the same because the probability of bankruptcy does not affect pricing.