Question
1. For Call Options, the __________ the existing market price of the underlying financial instrument relative to the exercise price, the ____________ option premium. (lower/higher)
1. For Call Options, the __________ the existing market price of the underlying financial instrument relative to the exercise price, the ____________ option premium. (lower/higher)
2. For Put Options, the __________ the existing market price of the underlying financial instrument relative to the exercise price, the ____________ option premium. (lower/higher)
3. The higher the call option premium, other things being equal, ______________ the existing price of the security relative to the exercise price. (lower/higher/no impact)
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American Public School Finance
Authors: William A. Owings, Leslie S. Kaplan
3rd Edition
113849996X, 978-1138499966
