If We Want to Compare the Contribution of Several Predictors

question 18

Multiple Choice

If we want to compare the contribution of several predictors to the prediction of a dependent variable, we can get at least a rough idea by comparing

• A) the regression coefficients.
• B) the standardized regression coefficients.
• C) the variances of the several variables.
• D) the simple Pearson correlations of each variable with the dependent variable.

Understand the distinction between intrinsic value and market price of call options.

Know the impact of time to expiration on the value of call options.

Understand the impact of volatility on the value of call options.

Recognize the effect of the risk-free rate of return on call option value.