Which of the following is false?
A) The option premium is a down payment on the option terms.
B) The option premium should never be less than the intrinsic value.
C) A call option and a put option with similar terms cannot both be in-the-money at the same time.
D) Call premiums and put premiums can both change in value every day.
Correct Answer:
Verified
Q11: An option premium equals
A) intrinsic value minus
Q12: An option that is in-the-money
A) must have
Q13: A put is in-the-money if
A) its strike
Q14: An at-the-money option
A) has a striking price
Q15: An option that can be exercised anytime
Q17: Which of the following is most correct?
A)
Q18: A futures contract is a _ ;
Q19: Futures contracts have a
A) delivery month.
B) expiration
Q20: For a futures contract to be successful,
Q21: _ accept risk from _ .
A) Hedgers,
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