Questions 13, 14 and 15 are general questions on options Q 13 2 The time...
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Questions 13, 14 and 15 are general questions on options Q 13 2 The time premium of a call option is at a maximum when The price of the underlying stock equals the strike price of the option. b.The option is far from being in the money. c. The option is deep in the money. d. None of the above. Q14. Other tings being equal, the value of a put option on an underlying stock is a Lower with a higher strike price and higher with a higher stock volatility. b. Higher with a higher strike price and lower with a higher stock volatility. c. Lower with a higher strike price and lower with a higher stock volatility. d. Higher with a higher strike price and higher with a higher stock volatility. Q15. An American call option is a. Worth less than a European callif the underlying stock pays large dividends. b. Worth less than a European call if the underlying stock does not pay dividends. c. Worth more than a European cali if the underlying stock pays large dividends. d. Worth more than a European call if the underlying stock does not pay dividends
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