The Value of Any Option (Both Call and Put Options)

question 59

Multiple Choice

The value of any option (both call and put options) is positively related to the

• A)volatility of the underlying stock price and time to expiration.
• B)time to expiration and risk-free rate.
• C)volatility of the underlying stock price and risk-free rate.
• D)risk-free rate.

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Definitions:

Spinal Cord

The cylindrical bundle of nerve fibers and tissue that is connected to the brain and runs down the vertebral column, transmitting signals to and from the brain.

Hair Cells

Sensory cells located in the inner ear, responsible for converting sound vibrations into electrical signals that can be interpreted by the brain.

Vestibular System

The sensory system that contributes to balance and spatial orientation for the purpose of coordinating movement with balance.

Action Potentials

Electrical impulses that are part of the process that cells use to communicate with each other, crucial for the functioning of nerves and muscles.