[amp_mcq option1=”longer option period” option2=”smaller option period” option3=”lesser price” option4=”higher price” correct=”option1″]<\/p>\n
The correct answer is: A. longer option period<\/strong>.<\/p>\n An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a specified date. The price at which the option can be exercised is called the strike price. The time period during which the option can be exercised is called the option period.<\/p>\n The price of an option is determined by a number of factors, including the strike price, the time to expiration, the volatility of the underlying asset, and the interest rate. In general, a higher strike price will result in a higher option price, because the buyer of the option will have a greater chance of making a profit. A longer option period will also result in a higher option price, because the buyer of the option has more time to make a profit.<\/p>\n The other options are incorrect because:<\/p>\n [amp_mcq option1=”longer option period” option2=”smaller option period” option3=”lesser price” option4=”higher price” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-59716","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\n\n