The value of any option (both call and put options) is positively related to theI) volatility of the underlying stock price; II) time to expiration; III) risk-free rate;
A. III only
B. II and III only
C. I and III only
D. I and II only
Answer: D
You might also like to view...
Which of the following statements on strategy and tactics is not true?
A. Tactics are short-term, adaptive moves. B. Tactics are designed to enact or pursue broad strategies. C. Strategy is subordinate to tactics. D. Strategy refers to the overall plan to accomplish one's goals.
In what stage of small group development do coalitions, subgroups, and cliques tend to form? Why is this?
What will be an ideal response?
The ________ approach to management has been used in a limited manner because many aspects of a management decision cannot be expressed through mathematical symbols and formulas.
A. systematic management B. human relations C. organizational behavior D. administrative management E. quantitative management
Zync Corporation decides that instead of simply offering a block of its debt securities for sale to the investment banker that submits the highest price, it should come up with a plan with a single investment banker. The procedure that the company has decided to follow is known as a _____.?
A. best-efforts arrangement? B. ?competitive bid C. ?negotiated deal D. ?trade-through arrangement E. ?financial intermediation