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Which of the following statements in relation to option pricing is incorrect ? Multiple Choice All else being equal, the premium is lower for an

Which of the following statements in relation to option pricing is incorrect?

Multiple Choice

  • All else being equal, the premium is lower for an option that is nearer to expiry.

  • None of the answers provided.

  • All else being equal, the premium is lower for an asset that demonstrates higher price volatility.

  • All else being equal, the premium is higher for a call option with a lower exercise price.

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