The ____ Is Not a Factor Affecting the Call Option

question 48

Multiple Choice

The ____ is not a factor affecting the call option premium.

• A)market price of the underlying instrument (relative to the option's exercise price)
• B)volatility of the underlying instrument
• C)current price of futures contracts on the underlying instrument
• D)time to maturity of the call option

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Definitions:

Journal Entry

A record that captures all the financial transactions of a business, displaying debits and credits in the accounting system.

Aging Method

An accounting technique used to estimate the amount of a company's bad debts based on the age of its receivables.

Bad Debts Expense

The cost recognized by businesses for uncollectible accounts receivable due to customer defaults.

Installment Accounts Receivable

Money owed to a company for goods or services purchased on a payment plan, typically including interest charges.