Question: 24 QUESTION 24 a-What are the five factors that affect an option's price? b-Discuss the impact of time to interest rate on the option price
24
QUESTION 24 a-What are the five factors that affect an option's price? b-Discuss the impact of time to interest rate on the option price by explaining to the graph below Call price Option price (5) - NW Put price 0 78 9 10 11 12 13 14 15 16 17 18 19 20 Interest rate (%) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac)
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