All of the Following Factors Affect the Price of a Stock

question 84

Multiple Choice

All of the following factors affect the price of a stock option except

• A)the risk-free rate.
• B)the riskiness of the stock.
• C)the time to expiration.
• D)the expected rate of return on the stock.

---

Definitions:

Variable Cost

Charges that increase or decrease depending on the volume of production or sales, like raw materials and direct labor.

Contribution Format

A method of income statement presentation that separates fixed costs from variable costs, highlighting the contribution margin.

External Reporting

The process of providing financial information to external stakeholders, such as investors, creditors, and regulatory bodies.

Contribution Approach

A cost accounting approach that separates fixed and variable costs to determine the contribution margin per unit and understand the impact on net income.