Which of the following factors is least likely to impact the call and put options differently?

A. Time to expiration
B. Risk-free rate
C. Costs associated with holding the asset

Correct Answer: A

The risk-free rate impacts the call and put options in opposite way. The costs of holding the asset also impact the options in opposite way. Both call and put options increase in value with increase in the time to expiration with the exception of European deep-in-the-money put option with a higher risk-free rate, low volatility and longer time to expiration.