Other Things Equal, the Price of a Stock Put Option

question 34

Multiple Choice

Other things equal, the price of a stock put option is negatively correlated with which of the following factors?

• A)The stock price
• B)The time to expiration
• C)The stock volatility
• D)The exercise price

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Definitions:

Trust

An arrangement in which property is transferred by one person (the grantor or settlor) to another (the trustee) for the benefit of a third party (the beneficiary).

Legal Arrangement

Agreements or structures established under law for managing and organizing rights, responsibilities, and relationships.

Ownership of Property

The legal right or title to possess, use, and enjoy a specified piece of land or goods.

Trademark Law

The area of law that deals with the registration, protection, and enforcement of trademarks, which distinguish goods and services of one entity from those of others.