The Value of a Stock Option Depends on All of the Following

question 31

Multiple Choice

The value of a stock option depends on all of the following EXCEPT:

• A) Exercise price.
• B) Variability of the stock price.
• C) Length of time until option expiration.
• D) Risk-free rate of interest.
• E) Bond price.

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Definitions:

Circuit

A closed path through which an electric current flows or may flow.

Atria

Chambers of the heart that receive blood from the veins and circulate it to the ventricles.

Pulmonary Veins

Blood vessels that carry oxygenated blood from the lungs back to the left atrium of the heart.

Oxygenated Blood

Blood that has been enriched with oxygen by the lungs and is circulated by the heart to the rest of the body.