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All of the following affect the value of a call option except the: A) strike price. B) stock price. C) standard deviation of the returns on a risk-free asset. D) continuously compounded risk-free rate. E) time to maturity..

Respuesta :

Answer: D. continuously compounded risk-free rate.

Explanation:

A call option is simply referred to as a contract that is made between a buyer and a seller at a certain price which involves the exchange a security. The security might be a bond, stock etc.

The value of a call option is affected by the strike price, stock price, standard deviation of the returns on a risk-free asset and the time to maturity.

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