Quiz Ch 20 – Factors Affecting Option Value
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
What factors are positively associated to the value of both call and put options?
What factors are positively associated to the value of both call and put options?
What factors display a negative relationship with the value of a call option?
What factors exhibit a positive relationship with the value of a put option?
Which can be considered as instances of “disguised options”?
How does a rise in the risk-free interest rate typically affect call option prices?
Which exchanges are considered the primary options exchanges in the United States?
How could you replicate the payoffs of buying a call option and lending the present value of its exercise price?
In the context of call options, when is the difference between the option value and the stock price minus the exercise price at its highest?
What does put-call parity demonstrate?
To where is the value of a put option associated negatively?