Which of the following affect the value of puts and calls written on shares of common stock?

I. price volatility of the underlying stock

II. current market price of the underlying stock

III. length of time until the option expiration date

IV. current market interest rate

A) I and II only

B) I, II and III only

C) II, III and IV only

D) I, II, III and IV

Which of the following variables are part of the Black-Scholes option pricing model?

I. the market price of the underlying stock

II. the volatility of the underlying security

III. the strike price of the option

IV. the risk-free rate of interest

V. the beta of the underlying security

VI. the time remaining before the option expires

A) I, II, IV and VI only

B) I, II and III only

C) I, II, III, IV and VI only

D) I, II, III, IV, V and VI