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Which of the following statement is NOT correct? According to the Black-Scholes option pricing theory, higher exercise price will lead to a higher call option
Which of the following statement is NOT correct?
According to the Black-Scholes option pricing theory, higher exercise price will lead to a higher call option price | ||
An in the money call option has strike price lower than the underlying asset price | ||
Higher underlying asset volatility leads to higher call option price under the Black-Scholes formula is because there is greater need to hedge for more volatile assets | ||
Option payoff of an option buyer is never negative |
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