Business finance-2011-12 A
Business finance-2011-12 A
Ans1:- As per option pricing theory, the various factors on which the price of options depends are the current stock price, the strike price, the time to expiration, the volatility of the stock price, the risk free interest rate and the dividends expected during life of an option. Greater the stock price greater will be the value of the call option and vice versa for put option. Greater will be the strike price, greater will be the value of the put option and vice versa for the put option.....