All of the following are incorporated into valuation models except:
A) the exercise price of the option.
B) the term of the option.
C) expected dividends.
D) current tax rates.
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Question

Quizplus · Accepted Answer

Current tax rates are not incorporated into valuation models for options. The exercise price, term of the option, and expected dividends are all factors that affect the value of an option and would be incorporated into a valuation model.

All of the Following Are Incorporated into Valuation Models Except