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Investments Study Set 5

Business

Quiz 21 :

Option Valuation

Quiz 21 :

Option Valuation

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Other things equal, the price of a stock call option is positively correlated with the following factors except
Free
Multiple Choice
Answer:

Answer:

D

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Prior to expiration,
Free
Multiple Choice
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Answer:

C

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A put option has an intrinsic value of zero if the option is
Free
Multiple Choice
Answer:

Answer:

E

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A call option has an intrinsic value of zero if the option is
Multiple Choice
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Before expiration, the time value of an in-the-money put option is always
Multiple Choice
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Before expiration, the time value of an at-the-money call option is usually
Multiple Choice
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If the stock price decreases, the price of a put option on that stock __________, and that of a call option __________.
Multiple Choice
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Other things equal, the price of a stock call option is positively correlated with which of the following factors?
Multiple Choice
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Before expiration, the time value of an at-the-money put option is always
Multiple Choice
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Other things equal, the price of a stock put option is negatively correlated with which of the following factors?
Multiple Choice
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Prior to expiration,
Multiple Choice
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Other things equal, the price of a stock call option is negatively correlated with which of the following factors?
Multiple Choice
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At expiration, the time value of an at-the-money put option is always
Multiple Choice
Answer:
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Other things equal, the price of a stock put option is positively correlated with which of the following factors?
Multiple Choice
Answer:
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Other things equal, the price of a stock put option is positively correlated with the following factors except
Multiple Choice
Answer:
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At expiration, the time value of an in-the-money put option is always
Multiple Choice
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At expiration, the time value of an in-the-money call option is always
Multiple Choice
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At expiration, the time value of an at-the-money call option is always
Multiple Choice
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If the stock price increases, the price of a put option on that stock __________, and that of a call option __________.
Multiple Choice
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The price of a stock put option is __________ correlated with the stock price and __________ correlated with the strike price.
Multiple Choice
Answer:
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