True regarding option pricing

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1. Three industry analysis approaches are

business cycle analysis, qualitative analysis of important factors affecting industries, sector rotation

business cycle analysis, quantitative analysis of important factors affecting industries, market timing

business cycle analysis, technical analysis of important factors affecting industries, fundamental sector analysis

business cycle analysis, fundamental analysis of important factors affecting industries, technical sector analysis

2. Which of the following is true regarding option pricing

the longer the maturity of the option, the higher the premium

the more volatile the underlying stock, the lower the premium

option prices are less volatile than equity prices

the shorter the maturity of the option, the higher the premium

Reference no: EM131928963

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