1. The value of an option depends on the stock's price, the risk-free rate, and the

a.	Exercise price.
b.	Variability of the stock price.
c.	Option's time to maturity.
d.	All of the above.
e.	None of the above.

2. An option which gives the holder the right to buy a stock at a specified price at some time in the future is called a(n)

a.	naked option.
b.	put option.
c.	call option.
d.	in-the-money option.
e.	out-of the money option.

3. A long-term option issued by a corporation to buy a stated number of shares of common stock at a specified price is a(n)

a.	preferred stock.
b.	convertible bond.
c.	warrant.
d.	put option.
e.	retained earnings option.