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Factors Influence the Price of an Option Include the ________

Question 58

Multiple Choice

Factors influence the price of an option include the ________.


A) future price of the underlying asset and the strike price.
B) time to expiration of the option and the expected price volatility of the underlying asset over the past year.
C) long-term and the risk-free interest rate over the life of the option.
D) the strike price and the anticipated cash payments on the underlying asset over the life of the option.

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