Answered step by step
Verified Expert Solution
Question
1 Approved Answer
4. What are the elements to take into account to determine the value of the premium in a financial option contract? a) Population average age,
4. What are the elements to take into account to determine the value of the premium in a financial option contract? a) Population average age, Exercise price, Interest rate, Dividends to be paid, Time to maturity and Inflation forecast. b) Price of the underlying asset, exercise price, interest rate, history of commissions already paid, time to maturity and inflation in the country of origin of the underlying asset. c) Price of the basic basket, Average price of the shares of the corresponding Exchange, Interest rate, Dividends to be paid, Time to maturity and Future volatility. d) Price of the underlying asset, exercise price, interest rate, dividends to be paid, time to maturity and future volatility
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started