An Investor Is More Likely to Exercise a Put Option

question 19

Multiple Choice

An investor is more likely to exercise a put option on a bond when:

• A)interest rates are expected to increase.
• B)interest rates are expected to decrease.
• C)the security's price is expected to increase.
• D)the security's rating is upgraded by Moody's.

---

Definitions:

Interstitial

Relating to spaces or interstices within a tissue or organ, often referred to in a medical or biological context.

Intracellular

Located or occurring within a cell or cells.

Body Fluid

Liquids originating from inside the bodies of living organisms, which include substances like blood, urine, and lymph, playing essential roles in their physiology.

Respiratory Acidosis

A medical condition wherein the lungs cannot remove all of the carbon dioxide the body produces, leading to a disturbed acid-base balance.