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)

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Definitions:

Executor or Executrix

Refers to a person appointed by a will to execute the deceased's estate, with executrix being the feminine form.

Died Intestate

Refers to a person who has passed away without having made a legally valid will.

Dies Intestate

Refers to a situation where a person passes away without having made a valid will, leading to the distribution of their assets according to state laws.