Pricing models are based on concept of riskless hedge

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Reference no: EM131553635

1. What happens to the value of a call option if the time to expiration is increased?

2. All option pricing models are based on the concept of a riskless hedge. Describe what this means. 3. What is the difference between an exercise price and an exercise value?

4. When the exercise price exceeds the current stock price a put option is said to be _________.

5. Options sold without the stock to back them up are called__________ options.

6. If you exercise one call option contract, how many shares of stock will you get?

Reference no: EM131553635

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