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1. What is an option premium? What is an option's intrinsic value? What other factors, besides intrinsic value, can affect the size of an option premium?

2. What is the Black-Scholes model? Who are the quants?  How can investors use options to manage risk?

3. Why might someone buy an option on a futures contract derived from an underlying asset rather than buy an option on the underlying asset itself?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M92059896

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