Which of the Following Factors Affect the Price of a Stock

question 25

Multiple Choice

Which of the following factors affect the price of a stock option?

• 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
• E) The risk-free rate, riskiness of the stock, and time to expiration

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Definitions:

Pollution Control Technology

Processes and equipment designed to reduce or eliminate the release of harmful substances into the environment.

Economically Depleted

pertains to a state of significant reduction in economic resources, wealth, and productivity, often leading to downturns in living standards and financial stability.

Non-renewable Resource

A non-renewable resource is a natural resource that cannot be readily replaced by natural means on a level equal to its consumption, such as oil, natural gas, and coal.

Population Growth

The increase in the number of individuals in a population, commonly influenced by factors such as birth rates, death rates, and immigration.