Which One of the Following Variables Influence the Value of Call

question 26

Multiple Choice

Which one of the following variables influence the value of call 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:

Decedent's Property

Refers to the assets, rights, and possessions owned by an individual at the time of their death, which are subject to inheritance, estate laws, and probate proceedings.

Totten Trust

is a form of revocable trust created by depositing funds into a bank account with a designated beneficiary, who inherits the account contents upon the depositor's death.

Revocable Living Trust

A legal document that allows an individual to specify how their assets should be managed and distributed during their life and after death, which can be altered or canceled by the grantor.

Holographic Will

A will written in the handwriting of the testator.