The most important factor affecting the market price of a put or call is the
A) expiration date.
B) market interest rate.
C) price behaviour of the corresponding warrant.
D) price behaviour of the underlying shares.

Question

Quizplus · Accepted Answer

The market price of a put or call option is primarily influenced by the price behavior of the underlying shares, as options derive their value from the underlying asset.

The Most Important Factor Affecting the Market Price of a Put