Question
If there are two call options on the same stock and both have the same strike price, the one with a longer time until expiration
If there are two call options on the same stock and both have the same strike price, the one with a longer time until expiration will have a lower premium.
True
False
If there are two put options on the same stock and both have the same strike price, the one with a longer time until expiration will have a lhigher premium.
True
False
As the risk free rate decreases, call premiums will decrease and put premiums will increase.
True
False
As the stock price of the underlying stock on a call option increases, the call premium will increase as well.
True
False
As the stock price of the underlying stock on a put option increases, the put premium will increase as well.
True
False
As the volatility of the underlying stock increases, put premiums will decrease and call premiums will increase.
True
False
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