Which of the Following Factors Is Not Considered in the Valuation

question 123

Multiple Choice

Which of the following factors is not considered in the valuation of call and put options?

• A) Current stock price
• B) Exercise price
• C) Market interest rate
• D) Volatility of underlying stock price
• E) None of the above (that is, all are factors which should be considered in the valuation of call and put options)

---

Definitions:

Fake Cocktails

Non-alcoholic beverages designed to mimic the taste and appearance of alcoholic drinks, often used in social settings.

Sociable

Exhibiting a willingness or tendency to engage with others in a friendly manner.

Withdrawal Symptoms

Physical and mental symptoms that occur after stopping or reducing intake of a substance that was used heavily and regularly.

Tremors

Involuntary, rhythmic muscle contractions resulting in shaking movements in one or more parts of the body.