Examveda
Examveda

In option pricing, an increasing in option price due to

A. time of expiry increases

B. time of expiry decreases

C. exchange time increases

D. exchange time decreases

Answer: Option A

Solution(By Examveda Team)

In option pricing, an increasing in option price due to time of expiry increases. Option pricing is the amount per share at which an option is traded. Although the option holder is not obligated to exercise the option, the seller must buy or sell the underlying instrument if the option is exercised.

This Question Belongs to Commerce >> Financial Management

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