Which of the Following Have the Greatest Effect on Stock

question 3

Multiple Choice

Which of the following have the greatest effect on stock option prices?

• A) Stock price and delta
• B) Theta and delta
• C) Rho and exercise price
• D) Delta and vega
• E) Stock price and exercise price

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Definitions:

Net Profit

Money remaining after costs of marketing and operating the business are paid.

Cost Of Goods Sold

Cost of Goods Sold (COGS) represents the direct costs attributable to the production of the goods sold by a company, including materials and labor costs.

Break-Even Volume

The quantity of sales or units sold required to cover the fixed and variable costs of production, resulting in a situation where the business makes neither a profit nor a loss.

Gross Profit Percentage

A financial metric that measures the proportion of money left over from revenues after accounting for the cost of goods sold, expressed as a percentage.