Factors Influence the Price of an Option Include the ________

question 58

Multiple Choice

Factors influence the price of an option include the ________.

• A) future price of the underlying asset and the strike price.
• B) time to expiration of the option and the expected price volatility of the underlying asset over the past year.
• C) long-term and the risk-free interest rate over the life of the option.
• D) the strike price and the anticipated cash payments on the underlying asset over the life of the option.

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Definitions:

Crisis

A critical or unstable time or state of affairs in which a decisive change is impending, especially with the possibility of a highly undesirable outcome.

Incentive Spirometer

A medical device used to help patients improve the functioning of their lungs and to prevent complications after surgery.

Pediatric Patient

A child or adolescent under the care of a medical professional, typically ranging from newborn to 18 years old.

Reinforcement

In psychology, a consequence applied that increases the likelihood of a behavior being repeated in the future.