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Commerce · Q678

Financial Management

Graduate and Post Graduate · Commerce · question 678

Q678

Variability of stock price, option term to maturity and risk free rate are dependents of

A.
price of an option
Answer
B.
expiry of an option
C.
exercise of an option
D.
estimation of an option

Answer: Option A

Solution

Answer: Option A
Solution:
Variability of stock price, option term to maturity and risk free rate are dependents of price of an option. Variability is the extent to which data points in a statistical distribution or data set diverge from the average value as well as the extent to which these data points differ from each other.