Market value of stock option is affected by risk free rate, stock price, stock price variance, exercise price and the time to maturity.
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A 5-year corporate bond rated BB by Standard & Poor belongs to Junk Bond grade.
Short selling refers to borrow money from the broker to buy shares when investors expect share price will go up.
Tobin’s q is the ratio of market price to liquidation value.
Traditional financial theories agree with the efficient market hypothesis which suggests human being is irrational.