Question: A) Describe all the variable that affect an option pricing and determine hich of the variables is not directly observable? B) If this variable is

A) Describe all the variable that affect an option pricing and determine hich of the variables is not directly observable?

B) If this variable is estimated to be higher or lower than the variable actually is, how is the option valuation affected?

PLEASE EXPLAIN BOTH A & B IN DETAIL....THANKS

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