Which of the following features of an option never changes over the life of the option?...

Which of the following features of an option never changes over the life of the option?

Select one:

a. The exercise price.

b. The price of the underlying asset.

c. The premium.

d. The time to maturity.

Expert Solution

The exercise price for the strike price of the option are never changing because either the option is exercised or either the option is not exercised, but it will have to be exercised at that exercise price if it is exercisable.

Premium of the option and time to maturity along with the price of the underlying asset are changing always.

Correct answer will be option ( A) The exercise price

jeff jeffy answered 2 years ago

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Changes over Financial Years

Calculate the changes in the figures provided over the successive financial years.

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