Which of the Following Factors Is not considered in the Valuation

question 44

Multiple Choice

Which of the following factors is not considered in the valuation of call and put options?

• A) Current stock price
• B) Exercise price
• C) Market interest rate
• D) Volatility of underlying stock price
• E) none of the above (that is, all are factors which should be considered in the valuation of call and put options)

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Definitions:

Historical development

The process of change and growth over time within societies, institutions, or technologies, highlighting the causes and effects of different events or trends.

Mass media

Various forms of communication technologies, such as television, radio, newspapers, and the internet, that reach a large audience simultaneously and have significant influence on societal norms and public opinion.

Audience influence

The impact that viewers, readers, or listeners have on the content, production, and dissemination of media.

Mass media

Various mediums of communication, such as television, newspapers, and the internet, that reach a large audience.