15) Arbitrage is the dominant force that determines the price of an option. A. true...

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Accounting

15) Arbitrage is the dominant force that determines the price of an option.

A. true

B. false

16. An American put option allows the holder to

A) buy the underlying asset at the striking price on or before the expiration date.

B) sell the underlying asset at the striking price on or before the expiration date.

C) potentially benefit from a stock price decrease.

D) b and c.

E) a and c.

17) All of the following factors affect the value of a call option except

A) the stock price.

B) the volatility (volatility of the stock).

C) the time to expiration.

D) All of the above affect the value.

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