Which of the Following Variables Affect the Value of Options

question 29

Multiple Choice

Which of the following variables affect the value of options?
i.Difficulty of interest rates
ii.Time to maturity of the option
iii.Share price volatility
iv.Dividend yield on the underlying share

• A) i and iv only
• B) ii and iii only
• C) i, ii and iv only
• D) i, ii, iii and iv

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Definitions:

Free Choice

The ability to choose between different possible courses of action unimpeded by external constraints or coercion.

Soft Determinists

Philosophers or theorists who argue that human behavior and actions are determined by external and internal influences but still maintain that individuals have free will.

High Probability

A statistical measurement indicating a high likelihood or chance that a specific event will occur.

Soft Determinist

Someone who believes in determinism but also holds that human behavior can be free if it corresponds to the individual's desires, even if those desires are determined.