All of the Following Factors Affect the Price of a Stock

question 24

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 the options

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Definitions:

Parent-Country National

An individual who is employed by an organization or corporation in their home country and is working in another country where the organization operates.

Multinational Company

An organization that builds facilities in a number of different countries in an effort to minimize production and distribution costs.

Production Costs

The total expenses incurred in the process of producing goods or services, including raw materials, labor, and overhead.

Distribution Costs

Expenses associated with delivering a company's products from the production point to the consumer, including transportation, warehousing, and logistics.