Which of the Following Affect the Value of Puts and Calls

question 68

Multiple Choice

Which of the following affect the value of puts and calls written on shares of common stock?
I. price volatility of the underlying stock
II. current market price of the underlying stock
III. length of time until the option expiration date
IV. current market interest rate

• A) I and II only
• B) I, II and III only
• C) II, III and IV only
• D) I, II, III and IV

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Definitions:

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