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Exam 2016-FRR Topic 1 Question 325 Discussion

Actual exam question for GARP's 2016-FRR exam
Question #: 325
Topic #: 1
Which one of the following four statements on factors affecting the value of options is correct?

Suggested Answer: A Vote an answer

Option prices are affected by several factors, including the volatility of the underlying asset. Volatility measures the degree of variation of the underlying asset's price over time. Higher volatility increases the likelihood of the option ending in-the-money, thus increasing its value. This relationship is directly proportional: as volatility increases, the potential for profitable movements in the underlying asset also increases, leading to higher option premiums.

by Donna at Mar 21, 2025, 08:09 AM

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Here are all the actual test exam dumps for IT exams. Most people prepare for the actual exams with our test dumps to pass their exams. So it's critical to choose and actual test pdf to succeed.

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