Which of the Following Would Affect the Premium of a Call

question 97

Multiple Choice

Which of the following would affect the premium of a call option?

• A) interest rates
• B) dividend yield
• C) stock price volatility
• D) all of the above

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Definitions:

Masked Variable

A variable that influences a study's outcome indirectly by affecting other variables, not easily identifiable.

Placebo

A substance with no therapeutic effect, used as a control in testing new drugs or used to induce psychological benefits purely through belief.

Matched Pair

A study design element where subjects are paired based on specific characteristics, ensuring that each pair is as similar as possible except for the variable under investigation.

Statistically Significant

A measure indicating that the likelihood of an observed outcome occurring by chance is low, often used in research to validate findings.