CFA Practice Question

There are 206 practice questions for this study session.

CFA Practice Question

Identify the factor(s) that affect(s) option prices but are not directly observable.

I. Strike price
II. Interest rate
III. Volatility
IV. Time to expiration
Correct Answer: III

The other factors can be observed directly either in the option contract or in the market.

User Contributed Comments 4

User Comment
gill15 Cant believe I got this wrong.
schweitzdm Same here.
Inaganti6 Volatility = sigma ?
khalifa92 yup
You need to log in first to add your comment.