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6. All of the following influence the price or premium of an option except: a. The strike price (in-the-money versus out-of-the-money) b. Fed funds rate.
6. All of the following influence the price or premium of an option except: a. The strike price (in-the-money versus out-of-the-money) b. Fed funds rate. c. Volatility. d. Time to expiration. 7. An option premium, in most cases, is paid upfront (at the time the option is bought or written) rather than at the option's expiration. True. b. False. a. 8. An investor who takes advantage of no risk profit opportunities, usually through pricing differences of the same security, is known as
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