Question: Answer the following questions about option valuation. Construct a table to list the six factors affecting option value (including call and put option) and their

  1. Answer the following questions about option valuation.
  1. Construct a table to list the six factors affecting option value (including call and put option) and their relation (positive or negative) with option value. (10%)
  2. Explain why the six factors positively or negatively affect option value (Hint: Address the difference between the intrinsic value and the time value of the option). (15%)

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