If the Stock Price Decreases, the Price of a Put

question 7

Multiple Choice

If the stock price decreases, the price of a put option on that stock __________, and that of a call option __________.

• A)decreases; increases
• B)decreases; decreases
• C)increases; decreases
• D)increases; increases

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Definitions:

Asynchronous Messages

Communication where messages are sent and received at different times, allowing participants to engage according to their own schedules.

Instantaneous

Occurring or done in an instant or immediately; without any noticeable delay.

Communication Codes

The system of symbols, signs, or rules used within a particular context or community for the purpose of conveying messages and meanings.

Paralanguage

The non-verbal elements of communication used to modify meaning and convey emotion, such as tone of voice, loudness, and pitch.