ICMA Exam FMFQ Topic 1 Question 53 Discussion

Actual exam question for ICMA's FMFQ exam

Question #: 53
Topic #: 1

[All FMFQ Questions]

Which of the following factors in option pricing is the most subjective?

AIntrinsic value

BInterest rates

CTime to maturity

DVolatility

Show Suggested Answer

Suggested Answer: C

by Myra at Apr 10, 2024, 03:35 PM

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Melodie

26 days ago

Volatility is the clear winner here. It's like trying to predict the weather - good luck with that!

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Isadora

30 days ago

Time to maturity seems the most subjective to me. It's hard to predict the exact expiration date.

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Kerry

1 months ago

I'd say the intrinsic value. There's a lot of debate around how to properly calculate it.

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Haydee

1 months ago

Definitely the volatility. It's the most unpredictable and hard to quantify.

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Chantay

2 months ago

I believe interest rates can also be subjective, depending on economic conditions.

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Dorthy

2 months ago

I agree with Rosendo, volatility can be difficult to predict.

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Rosendo

2 months ago

I think the most subjective factor is volatility.

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