Question
As described in the videos, to simplify things in class, we think of option premium as consisting of Group of answer choices four part one
As described in the videos, to simplify things in class, we think of option premium as consisting of
Group of answer choices
four part
one part
two part
three part
Question 14
A speculator is looking at a July 420 corn put that has a premium of 19 cents; futures are currently at 415. If the speculator buys this option for 19 cents, what will have to happen for it to be worth that amount at expiration?
Group of answer choices
the futures price will have to rise by 5 cents
the futures price will have to rise by 14 cents
the futures price will have to fall by 5 cents
the futures price will have to fall by 14 cents
Question 15
Calls that have strike prices below the future price are
Group of answer choices
at the money
in the money
out of the money
beside the money
Question 16
A former student buys at 900 call at Time 1 when the futures price is 820. At Time 2, the futures price has risen to 985. Which is true?
Group of answer choices
The premium at Time 2 is entirely time value
There was more intrinsic value at Time 1 than there is at Time 2
The call was worth more at Time 1 than it is at Time 2
The call is worth more at Time 2 than it was at Time 1
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