Question
Which of the following statements is correct?
>             I.       The price of a call option decreases as the strike price increases            II.       The price of a Put option increases as the strike price increases           III.       Both call and put options become more valuable as their time to maturity increases          IV.       American options can be exercised only at the time of maturitySolution
The call option is exercised when the exercise price is less than the current market price. The more the difference; the more probability of the call option being exercised. Therefore, the price of the call option will decrease when the strike price is more but the call option where the exercise price is comparatively lesser would be more valuable. Similarly, for the put option, its value is increased when the exercise price is more. The more remaining time to maturity, the more the value of both call and put options. The reason is that it gives time for the option to be exercised which gives it value. An American option can be exercised anytime before the maturity period
After interchanging which two numbers, the value of the given equation will be '37'?
9 × 7 + 4 ÷ 1 – 6
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77 ÷ 7 × 17 – 49 + 7 = ?
...What should come in place of the question mark (?) to complete the following letter-cluster series?
BDC, EGF, HJI, ?Â
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A piece of paper is folded and punched as shown below in the question figures. From the given option figures, indicate how it will appear when opened? <...
Select the set in which the numbers are related in the same way as are the numbers of the following sets.
(NOTE: Operations should be performed o...
In the following question, select the missing number from the given series.Â
50, 52, 56, 64, 80, ?Â
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18 32 60 116 228 ?
Which figure should replace the question mark (?) in the following series to continue the pattern?
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