- CFA Exams
- CFA Level I Exam
- Topic 7. Derivatives
- Learning Module 8. Pricing and Valuation of Options
- Subject 3. Factors Affecting Option Value
CFA Practice Question
Which factor is INVERSELY related to the value of a European call option?
B. Time to expiration
C. Exercise price
A. Value of the underlying
B. Time to expiration
C. Exercise price
Correct Answer: C
At expiration the option is worth ST - X.
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