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

Question

Quizplus · Accepted Answer

The price behavior of the underlying common stock is the most important factor affecting the market price of a put or call option, as the value of these options is directly related to the price movements of the stock they are derived from.

The Most Important Factor Affecting the Market Price of a Put