All of the following factors affect the price of a stock option except
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) none of these.

Question

Quizplus · Accepted Answer

The expected rate of return on the stock does not directly affect the price of a stock option; instead, factors like the risk-free rate, stock volatility, and time to expiration are more relevant.

All of the Following Factors Affect the Price of a Stock