Answer (C) is correct . The exercise price, the expiration date, and the interest rate are all determinants in valuing a call option.
Answer (A) is incorrect because Exercise price is one of the determinants on which the value of a call option is based. Answer (B) is incorrect because The call option’s expiration date is used in determining the call option’s value. Answer (D) is incorrect because The risk-free interest rate is one of the determinants of the value of a call option.
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