ACI

3I0-012 · Question #656

An option premium is a positive function of:

The correct answer is D. All of the above. See the full explanation below for the reasoning.

Question

An option premium is a positive function of:

Options

ATime to expiry
BThe volatility of the price of the underlying commodity
CThe moneyness of the option
DAll of the above

How the community answered

(63 responses)

A
10% (6)
B
3% (2)
C
6% (4)
D
81% (51)

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Full 3I0-012 Practice