题目内容

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.

查看答案

搜索结果不匹配？点我反馈

更多问题

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.

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