题目内容

Facebook (FB)'s current stock price is $75.89. A broker's market for the put option on the $80 strike expiring in 2 days is $3.75 bid at $4.00. Assuming no execution risk, what trade do you want to execute? Assume that the risk-free interest rate is 0%, FB does not issue dividends, and that there are no transaction costs.

A. Definitely buy $4.00
B. Need more information
C. Definitely sell $3.75
D. The market is fairly priced

查看答案
更多问题

An investor purchases a put option on AAA shares that has a strike price of €50 and expires in three months. One month later, AAA shares are trading at €54. At that time, the put most likely has:

A. positive intrinsic value but no time value.
B. positive time value but no intrinsic value.
C. positive time value and positive intrinsic value.

The loss in value of an option as it moves closer to expiration is called

A. Time value decay
B. Volatility diminution
C. Time value of money

For a European call option with two months until expiration, if the spot price is below the exercise price, the call option will most likely have:

A. zero time value.
B. positive time value.
C. positive exercise value.

An at-the-money American call option on a stock that pays no dividends has three months remaining until expiration. The market value of the option will most likely be:

A. less than its exercise value.
B. equal to its exercise value.
C. greater than its exercise value.

答案查题题库