Question
A) Which two of the following have the greatest effect on stock option prices? I. volatility of underlying stock price II. time to option maturity
A) Which two of the following have the greatest effect on stock option prices? I. volatility of underlying stock price II. time to option maturity III. underlying stock price IV. option strike price
B) Delta measures the dollar impact of a change in which one of the following on the value of a stock option?
- volatility of the underlying stock price
- risk-free interest rate
- underlying stock price
- option strike price
- time to maturity
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Financial Markets And Institutions
Authors: Jeff Madura
13th Edition
0357130790, 978-0357130797
