If the Stock Price Decreases, the Price of a Put

question 15

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
• E) does not change; does not change

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Definitions:

Strong Preference

A situation where an individual or group greatly favors one option over another, often influencing decision-making processes and outcomes.

Kingship

The position, office, or authority of a king, encompassing aspects of governance, social hierarchy, and cultural symbolism in various societies.

Emblem

A symbolic figure or design that represents a concept, identity, idea, or brand.

Asye Usu

Baule (Côte d’Ivoire) bush spirits.