Q651
In an option pricing, a rises in risk free rate results in option's value
A.
slight time decreases
B.
slight increases
AnswerC.
slight decreases
D.
slight time increases
Answer: Option B
Solution
Answer: Option B
Solution:
In an option pricing, a rises in risk free rate results in option's value slightly increases. Option pricing is the amount per share at which an option is traded. Although the option holder is not obligated to exercise the option, the seller must buy or sell the underlying instrument if the option is exercised.