Which of the following does NOT influence the option price?
A) past stock price
B) up and down factors u and d
C) risk free rate
D) exercise price
E) current stock price

Question

Quizplus · Accepted Answer

Past stock price does not influence the option price as it is a historical data point and does not reflect current market conditions or expectations. The other options listed (up and down factors, risk-free rate, exercise price, and current stock price) are all factors that can impact the price of an option.

Which of the Following Does NOT Influence the Option Price