Which of the Following Is not a Factor Needed to Calculate

question 55

Multiple Choice

Which of the following is not a factor needed to calculate the value of an American call option?

• A) The price of the underlying stock.
• B) The exercise price.
• C) The price of an equivalent put option.
• D) The volatility of the underlying stock.
• E) The interest rate.

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Definitions:

UCC

Short for Uniform Commercial Code, a set of laws that provide legal rules and regulations governing commercial or business dealings and transactions in the United States.

Cashier's Check

A cashier's check, which is underwritten and signed by the bank itself, utilizing its own finances.

Certified Check

Any check that is accepted by the bank from which the funds are drawn.

Teller's Check

A check drawn by a bank on its own funds and signed by a teller, often used in situations requiring guaranteed funds.