Other things held constant, the value of an option depends on the stock's price, the risk-free rate, and the

Name: Other things held constant, the value of an option depends on the stock's price, the risk-free rate, and the
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The value of an option depends on the strike price, variability of the stock price, and the option's time to maturity. All of these factors affect the probability of the option being in the money at expiration and therefore impact the option's value.

Other Things Held Constant, the Value of an Option Depends