Time expiration

Instructions:

Paper must be original. Thank you

Analyze the effect on a call option’s price that results from various financial factors. Refer to the Module 8 Short Paper Guidelines and Rubric for more information.

First review the module resources, especially Chapter 8. Next address the following questions:

  • What effect does Stock Price have on call option price?
  • What effect does Time expiration have on call option price?
  • What effect does Risk-free rate have on call option price?
  • What effect does Standard Deviation of Stock returns have on call option price?

Refer to your textbook and other course materials to support your responses. Please include at least one scholarly resource as a reference, excluding your textbook

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