All of the Following Are Variables Used to Determine a Call

question 3

Multiple Choice

All of the following are variables used to determine a call option's price except

• A)the risk-free rate
• B)the probability of stock price movement
• C)the exercise price
• D)the possible future stock prices at expiration
• E)none of the above

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Definitions:

JIT Systems

Just-In-Time Systems refer to a strategy to increase efficiency and decrease waste by receiving goods only as they are needed in the production process.

Inventory

The quantity of goods or materials that a business holds for the purpose of resale or production.