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:

Worldviews

Encompasses the fundamental cognitive orientation of an individual or society encompassing natural philosophy, fundamental existential and normative postulates, or themes, values, emotions, and ethics.

Surface-Level

Concerned with or limited to only the outward or superficial aspects of something.

Deep-Level

Pertaining to the underlying or more complex aspects of something, going beyond the surface level.

Self-Awareness

The conscious knowledge of one's own character, feelings, motives, and desires.