n NISM Certifications
NSM General NISM
Medium

The key variable(s) affecting an option's price is/are ________.

Practice question from NISM Series IV - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    The spot price of underlying asset

  2. B

    The time to expiration

  3. C

    The strike price of an option

  4. All of the above

    Correct answer

Why this is the answer

The option price depends on spot price, time to expiry, and strike price, among other factors.

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