The market price paid for an option is best defined as: a. The strike price of the option b. The option premium c. The difference between the futures price and option price d. The time value of the option

The market price paid for an option is best defined as: a. The strike price of the option b. The option premium c. The difference between the futures price and option price d. The time value of the option

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter21: Risk Management

Section: Chapter Questions

Problem 6QTD

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Question

The market price paid for an option is best defined as:

a. The strike price of the option
b. The option premium
c. The difference between the futures price and option price
d. The time value of the option

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