Which One of the Following Variables Influence the Value of Options

question 21

Multiple Choice

Which one of the following variables influence the value of options?
I.Level of interest rates.
II.Time to expiration of the option.
III.Dividend yield of underlying stock.
IV.Stock price volatility.

• A) I and IV only.
• B) II and III only.
• C) I,II,and IV only.
• D) I,II,III,and IV.
• E) I,II and III only.

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Definitions:

Wrongfully Refuses

Refers to an unjust or unauthorized act of denying or rejecting something that is due or deserved.

Action For Damages

A legal proceeding initiated to seek compensation for harm or loss suffered due to another's negligence or wrongful act.

Market Prices

The current prices at which goods and services can be bought or sold in a marketplace.

Reasonable Grounds

Justifiable reasons based on facts or evidence that would lead a reasonable person to a certain conclusion.