Which of the following is not a determinant of option premiums?
A) The volatility of the underlying stock
B) The price of the underlying stock
C) The time to expiration of the option
D) All of the above are determinants of option premiums.

Question

Quizplus · Accepted Answer

All of the above are determinants of option premiums. The volatility of the underlying stock, the price of the underlying stock, and the time to expiration of the option are all factors that contribute to the determination of option premiums. Other factors may include interest rates and dividend payouts, but these are not listed as options in the given choices.

Which of the Following Is Not a Determinant of Option