All of the Following Factors Affect the Price of a Stock

question 2

Multiple Choice

All of the following factors affect the price of a stock option except

• A) the risk-free rate.
• B) the riskiness of the stock.
• C) the time to expiration.
• D) the expected rate of return on the stock.
• E) none of these.

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Definitions:

Human Capital

The qualifications, know-how, and lived experiences of a person or society, assessed in terms of their profitability or cost to a business or country.

Compensating Differential

The additional amount of income that a worker requires to accept a job with undesirable features, compared to a similar job with more favorable features.

Cardiologist

A specialist doctor who diagnoses and treats conditions related to the heart and blood vessels.

Human Capital

Competencies, wisdom, and learning acquired by an individual or collective, evaluated for their financial or beneficial impact on an enterprise or sovereign state.