Quiz Ch 16 – Factors Impacting Put Option Value
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
Which factor does NOT contribute to the rise in the value of a put option?
Which factor does NOT contribute to the rise in the value of a put option?
The call option values typically increase when which factor decreases under equivalent conditions?
In which scenario is the gap between an option’s intrinsic value and its market value generally the widest?
What range do hedge ratios for long calls always fall within?
What trio of stock price, exercise price, and option cost is linked with an American call option?
What term best characterizes the intrinsic value of an out-of-the-money call option?
What action could be taken to optimize returns during a highly bullish stock market outlook?
What term is frequently used to refer to the hedge ratio of an option?
What term refers to the calculation derived from dividing the percentage change in the call option price by the percentage change in the stock price?
What option pricing model is grounded on the premise that stock prices can fluctuate between only two values within a short time?