Which of the following factors affect the price of a stock option?
A. The risk-free rate
B. The riskiness of the stock
C. The time to expiration
D. The expected rate of return on the stock
E. The risk-free rate, riskiness of the stock, and time to expiration
E. The risk-free rate, riskiness of the stock, and time to expiration
The risk-free rate, riskiness of the stock, and time to expiration are directly related to the price of the option; the expected rate of return on the stock does not affect the price of the option.
You might also like to view...
In organizations with a diverse workforce, it is usually constructive to
A. ignore cultural differences and just hope everyone will get along OK. B. express pity for minorities and disabled persons. C. divide the workforce into teams, with each team comprised only of persons from a single culture. D. discuss cultural differences openly, as long as you avoid inflammatory remarks.
The names of the four major classifications of adjusting entries are ____________________, ____________________, ____________________, and ____________________
Fill in the blank(s) with correct word
Which of the following forms of agency relationships does a power of attorney document establish?
A) agency by agreement B) agency by implied authority C) agency through ratification D) agency by estoppel
When might best of breed not be “best”?
What will be an ideal response?