Which of the following are important factors in pricing exchange cleared options? A. strike price, underlying...

Which of the following are important factors in pricing exchange cleared options?

A. strike price, underlying price, time to expiry, volatility
B. strike price, volatility, time to expiry, seller credit rating
C. strike price, underlying price, volatility, seller credit rating
D. strike price, underlying price, time to expiry, seller credit rating

Solutions

Expert Solution

Answer is A. Strike price, Underlying price, time to expiry, volatility.

Explanation: All these factors criticaly effect the pricing decisions of options having exchange clearance.

jeff jeffy answered 1 year ago

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