Which One of the Following Variables Influences the Value of Put

question 66

Multiple Choice

Which one of the following variables influences the value of put options?I) Level of interest ratesII) Time to expiration of the optionIII) Dividend yield of underlying stockIV) Stock price volatility

• A) I and IV only
• B) II and III only
• C) I, II, and IV only
• D) I, II, III, and IV
• E) I, II, and III only

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Definitions:

Internal Rate

Often referring to the internal rate of return (IRR), it's the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Screening Tool

A method or instrument used to evaluate or identify certain characteristics or conditions, often used in the context of health care or recruitment.

Internal Rate

Internal Rate, often referred to as Internal Rate of Return (IRR), is the discount rate that makes the net present value (NPV) of all cash flows from a particular project zero.

Initial Investment

The amount of money spent to start a project, purchase assets, or acquire a business.