Which of the Following Factors Will Affect the Price of an Option

question 65

Multiple Choice

Which of the following factors will affect the price of an option?

• A) The strike price of the option
• B) The amount of time until expiration
• C) The price of the underlying stock
• D) All of the above

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Definitions:

Altruism

The principle or practice of concern for the welfare of others, often at a cost to oneself.

Competitiveness

A personal trait characterized by a desire to win or be more successful than others, often driving individuals to pursue goals with vigor and persistence.

Hostility

Hostility is an emotion characterized by antagonism or aggression towards others, often resulting from frustration or perceived threats.

Type A

A personality characterized by a constant sense of urgency, competitiveness, and an excessive preoccupation with work and time management.