All of the Following Factors Affect the Price of a Stock

question 6

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.
• E) None of the options are correct.

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Definitions:

Original Contract

A primary agreement between parties before any amendments, modifications, or revisions.

Ethical And Equitable

These terms refer to principles and practices that are morally right and fair, ensuring justice and equality in various contexts.

Consideration

A fundamental concept in contract law that involves something of value given by both parties to an agreement as an inducement to enforce the contract.

Enforce A Contract

The legal process of compelling parties to comply with the terms of a contract through court action.