The Most Important Factor Affecting the Market Price of a Put

question 47

Multiple Choice

The most important factor affecting the market price of a put or call is the

• A) market interest rate.
• B) expiration date.
• C) price behavior of the underlying common stock.
• D) price behavior of the corresponding warrant.

---

Definitions:

Mean Number

The mean value obtained from a series of numbers, determined by adding all the numbers together and then dividing by the total number of values in the series.

Safety Roadblock

A preventative measure set up temporarily on roads to enhance safety by controlling traffic flow, reducing speed, or preventing access to certain areas.

First Serves

In tennis, the initial serve attempt in a point; this serve, if successful, can set the tone for the remainder of the play.

Probability

Probability quantifies the likelihood of an event happening, ranging from 0 (impossibility) to 1 (certainty).