Which of the Following Factors Affect the Price of a Stock

question 25

Multiple Choice

Which of the following factors affect the price of a stock option?

• 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) The risk-free rate, riskiness of the stock, and time to expiration

---

Definitions:

Central Nervous System

The part of the nervous system that consists of the brain and spinal cord, responsible for integrating sensory information and responding accordingly.

Depressant

A substance that reduces the functional or nervous activity, often used to describe drugs that inhibit the central nervous system, leading to sedation or relaxation.

Alcohol

A psychoactive substance commonly found in beverages like beer, wine, and spirits, known for its intoxicating effects.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing and transmitting information in the body.