Question 3 (4 points) Which ONES of the following statement are INCORRECT? You need to select ALL and ONLY INCOR- RECT s
-
- Site Admin
- Posts: 899603
- Joined: Mon Aug 02, 2021 8:13 am
Question 3 (4 points) Which ONES of the following statement are INCORRECT? You need to select ALL and ONLY INCOR- RECT s
Question 3 (4 points) Which ONES of the following statement are INCORRECT? You need to select ALL and ONLY INCOR- RECT statements to get points. No partial credit is given. A. Everything else equal, the higher the strike price is, the higher the prices of American and European calls are. B. AAPL closes today at $97. The put option on AAPL with strike $99 and expiration date of today will be exercised. C. Option buyer and seller have opposite payoffs and profits. D. Everything else equal, the higher the volatility of the underlying stock's return is, the lower the option prices are, both European and American, both puts and calls.