Question: answer all please Attempts Keep the Highest / 1 8. The five factors affecting prices of call and put options Both call and put options
Attempts Keep the Highest / 1 8. The five factors affecting prices of call and put options Both call and put options are affected by the following five factors the exercise price, the underlying stock price, the time to expiration, the stock's standard deviation, and the risk-free rate. However, the direction of the effects on call and put options could be different. Use the following table to identify whether each statement describes put options or call options. Statement Put Option Call Option 1. When the exercise price increases, option prices increase. 2. An option is mont valuable the longer them 3. The effect of the time to maturity on the option prices is indeberminate 4. As the rise free rate increases the value of the option increases Grade it Now Save Continue Cone without saving
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
