{"id":43118,"date":"2024-04-15T21:24:54","date_gmt":"2024-04-15T21:24:54","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=43118"},"modified":"2024-04-15T21:24:54","modified_gmt":"2024-04-15T21:24:54","slug":"stock-option-is-more-worthwhile-if-it-is","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/stock-option-is-more-worthwhile-if-it-is\/","title":{"rendered":"Stock option is more worthwhile if it is"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;extremely volatile&#8221; option2=&#8221;less volatile&#8221; option3=&#8221;stable stock&#8221; option4=&#8221;unstable price stock&#8221; correct=&#8221;option2&#8243;]<!--more--><\/p>\n<p>The correct answer is: B. less volatile.<\/p>\n<p>A stock option is a contract that gives the buyer the right, but not the obligation, to buy or sell a stock at a specified price on or before a specified date. The price at which the option can be exercised is called the strike price. The date by which the option must be exercised is called the expiration date.<\/p>\n<p>The value of a stock option depends on the following factors:<\/p>\n<ul>\n<li>The strike price<\/li>\n<li>The expiration date<\/li>\n<li>The volatility of the stock<\/li>\n<li>The interest rate<\/li>\n<li>The dividend yield of the stock<\/li>\n<\/ul>\n<p>The volatility of a stock is a measure of how much the price of the stock fluctuates. A stock that is highly volatile is one whose price changes frequently and by large amounts. A stock that is less volatile is one whose price changes less frequently and by smaller amounts.<\/p>\n<p>In general, stock options are more valuable when the stock is more volatile. This is because a more volatile stock is more likely to move in the direction that the option holder wants it to move. For example, if a stock option holder buys a call option, they are hoping that the stock price will go up. If the stock is more volatile, there is a greater chance that the stock price will go up by a large amount, which will make the option more valuable.<\/p>\n<p>However, there are some exceptions to this rule. For example, if the stock is very volatile, the option may be too expensive to be worth buying. Additionally, if the stock is very volatile, there is a greater risk that the stock price will go down, which would make the option worthless.<\/p>\n<p>Therefore, the best way to determine whether a stock option is worthwhile is to consider all of the factors that affect its value, including the strike price, the expiration date, the volatility of the stock, the interest rate, and the dividend yield of the stock.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;extremely volatile&#8221; option2=&#8221;less volatile&#8221; option3=&#8221;stable stock&#8221; option4=&#8221;unstable price stock&#8221; correct=&#8221;option2&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-43118","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Stock option is more worthwhile if it is<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/stock-option-is-more-worthwhile-if-it-is\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Stock option is more worthwhile if it is\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;extremely volatile&#8221; option2=&#8221;less volatile&#8221; option3=&#8221;stable stock&#8221; option4=&#8221;unstable price stock&#8221; correct=&#8221;option2&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/stock-option-is-more-worthwhile-if-it-is\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-15T21:24:54+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Stock option is more worthwhile if it is","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/stock-option-is-more-worthwhile-if-it-is\/","og_locale":"en_US","og_type":"article","og_title":"Stock option is more worthwhile if it is","og_description":"[amp_mcq option1=&#8221;extremely volatile&#8221; option2=&#8221;less volatile&#8221; option3=&#8221;stable stock&#8221; option4=&#8221;unstable price stock&#8221; correct=&#8221;option2&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/stock-option-is-more-worthwhile-if-it-is\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-15T21:24:54+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/stock-option-is-more-worthwhile-if-it-is\/","url":"https:\/\/exam.pscnotes.com\/mcq\/stock-option-is-more-worthwhile-if-it-is\/","name":"Stock option is more worthwhile if it is","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2024-04-15T21:24:54+00:00","dateModified":"2024-04-15T21:24:54+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/stock-option-is-more-worthwhile-if-it-is\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/stock-option-is-more-worthwhile-if-it-is\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/stock-option-is-more-worthwhile-if-it-is\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"Financial management","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/financial-management\/"},{"@type":"ListItem","position":3,"name":"Stock option is more worthwhile if it is"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/43118","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=43118"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/43118\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=43118"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=43118"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=43118"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}