Which one of the following is least apt to affect the value of a warrant?
A)Exercise price
B)Underlying stock price
C)Risk-free interest rate
D)Variance of underlying stock returns
E)Market rate of return

Question

Quizplus · Accepted Answer

The market rate of return is least apt to affect the value of a warrant directly. Warrants, like options, are primarily influenced by factors such as the exercise price, the underlying stock price, the risk-free interest rate, and the variance of the underlying stock returns. The overall market rate of return is more of a macroeconomic factor that doesn't directly impact the valuation of a specific warrant in the same way these other factors do.

Which One of the Following Is Least Apt to Affect