Which One of the Following Variables Influence the Value of Put

question 66

Multiple Choice

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

Divided Government

A scenario wherein the presidency is controlled by one political party, while the other party controls one or both houses of Congress, leading to potential legislative gridlock.

Republican

A member or supporter of the Republican Party, advocating for its conservative ideologies and political principles.

Democrats

A political party in the United States that generally supports liberal policies, emphasizing social equality, environmental protection, and government intervention in the economy to promote social welfare.

Senate Majority Leader

The chief spokesperson and strategist for the majority party in the U.S. Senate, responsible for legislative planning and party agenda.