ACI
3I0-012 · Question #182
An option premium is normally a positive function of:
The correct answer is D. the implied volatility of the price of the underlying. See the full explanation below for the reasoning.
Question
An option premium is normally a positive function of:
Options
- Athe traded volume
- Bthe historical volatility of the price of the underlying commodity
- Cthe style (European or American) of the option
- Dthe implied volatility of the price of the underlying
How the community answered
(38 responses)- A16% (6)
- B8% (3)
- C5% (2)
- D71% (27)
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