Which of the Following Is NOT a Factor That Influences

question 24

Multiple Choice

Which of the following is NOT a factor that influences option prices?

• A) The option premium.
• B) The time until option expiry.
• C) The strike price of the option.
• D) The market price of the underlying security.

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Definitions:

Period Costs

Expenses that are not directly tied to the production of goods or services, such as selling, general, and administrative expenses, and are expensed in the period incurred.

Prime Costs

A calculation in cost accounting that signifies the sum of direct materials cost and direct labor cost.

Direct Materials

Specific raw materials that are traceable to the manufacturing process of a product, serving as an essential component in its production.

Indirect Materials

Materials used in the production process that cannot be directly linked to a specific product, such as lubricants for machinery.