2016-FRR Exam Dumps | The value of which one of the following four option types is typically dependent on both the final price

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GARP.2016-FRR.v2024-09-09.q145
Question 106

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Question 106/145

The value of which one of the following four option types is typically dependent on both the final price of its underlying asset and its own price history?

A. Stout options

B. Power options

C. Chooser options

D. Basket options

Correct Answer: D

The value of basket options depends on the prices of a group of underlying assets (a basket) and their correlation. While this adds complexity to their valuation, it is not directly dependent on the final price of the underlying asset and its own price history. Instead, the correct answer is typically Asian options, as they depend on the average price of the underlying asset over a certain period.

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