14.- Which is the effect of a declining volatility in the final value of an option?.

a) Higher value for call and lower value for put.

b) Higher value for call and for put.

c) Lower value for call and for put only when both options are at-the-money.

d) All answers are false.

15.- Which is the impact of a lower dividend in the final value of an option?.

a) Higher value for call and lower value for put.

b) Lower value for call and for put.

c) Lower value for call and higher value for put.

d) Higher value for call and for put.

16 -. Assuming that you are at the expiration date of a put option, which of the following answers is true?.

a) Time value is positive.

b) Time value is negative.

c) Time value is zero.

d) Time value at expiration depends if the option is in, out or at-the-money.

17.- An investor bought an AT-THE-MONEY CALL option with a strike price 150 Euros paying a premium of 15 Euros. Assuming cash settlement at expiration, calculate the return considering that the underlying asset has depreciated by 17%. a) Investor made a profit of 17%.

b) Investor lost 16.33%.

c) Investor lost 100%.

d) Investor lost 2.55 Euros.