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

1 months ago

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

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Isadora

2 months ago

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

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Georgeanna

1 days ago

Interest rates can also be subjective, they can change unexpectedly.

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Laila

4 days ago

I agree, predicting how much a stock will fluctuate can be tricky.

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Clare

5 days ago

I think volatility is the most subjective factor in option pricing.

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Kerry

2 months ago

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

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Zack

9 days ago

Interest rates can also be subjective, depending on the economic outlook.

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Matilda

13 days ago

I think volatility is the most subjective factor in option pricing.

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Ozell

14 days ago

I agree, intrinsic value can be tricky to determine.

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Haydee

2 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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