If the Stock Price Increases, the Price of a Put

question 38

Multiple Choice

If the stock price increases, 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:

Drawsheets

Small bed linens placed crosswise over the middle of the bottom sheet to assist in repositioning or lifting a patient in bed.

Position

The way in which someone or something is placed or arranged in relation to its surroundings.

Direction of Movement

Refers to the course along which someone or something moves, which can be described in terms of direction (such as north, south, forward, backward).

Stroke

Is a medical condition characterized by a sudden disruption of blood flow to parts of the brain, causing tissue damage and possible loss of function.