46、Do options and futures, respectively, most directly reveal the prices or the volatility of their underlying assets? | Options | Futures | A. | Prices | Prices | B. | Prices | Volatility | C. | Volatility | Prices | D. | Volatility | Volatility |
A. Answer A B. Answer B C. Answer C D. Answer D
Correct answer = C
"Derivative Markets and Instruments," Don M. Chance
2008 Modular Level I, Vol. 6, pp. 20-22
Study Session 17-70-c
discuss the purposes and criticisms of derivative markets
The volatility of the underlying asset is critical to the value of an option. Options reveal more about volatility than about spot prices. Futures, forwards, and swaps are more directly related to price discovery. | 
发表于 2008-5-29 10:57
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