Identify the Five Variables That Affect the Value of an American

question 60

Essay

Identify the five variables that affect the value of an American put option and indicate how an increase in each of the variables will affect the value of the put.Also indicate the common name,if any,given to each variable.

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Definitions:

Internet

A global network of interconnected computers and servers that enables the sharing of information and communication across vast distances.

Distant State

A term that may refer to a state that is geographically far from a certain reference point or in a figurative sense, indicating a state of being quite different from a current condition.

Dissatisfied Customer

A consumer who is unhappy with the goods or services received from a business.

Trade-offs

Situations where a gain in one area requires a loss in another, often involving decisions that balance out different factors or outcomes.