Which One of the Following Will Decrease the Value of a Put

question 214

Multiple Choice

Which one of the following will decrease the value of a put option?

• A) An increase in the price of the stock
• B) An increase in the strike price
• C) An increase in the standard deviation of the return on the stock
• D) A decrease in the risk-free rate of return
• E) An increase in the time to expiration

---

Definitions:

Intervening Cause

An event that occurs after the defendant's act that contributes to the harm or damage, potentially absolving the defendant of liability because it breaks the chain of causation.

Reasonably Necessary

A standard requiring actions or measures that are logically appropriate and needed to achieve a certain goal or outcome, considering the circumstances.

Risk Of Harm

The potential for individuals to experience injury, damage, or loss as a result of certain actions or events.

Negligence Per Se

The doctrine that provides that a conclusive presumption of breach of duty arises when a defendant has violated a statute and thereby caused a harm the statute was designed to prevent to a person the statute was designed to protect.