If the Strike Price Increases Then The: [Assume Everything Else

question 38

Multiple Choice

If the strike price increases then the: [Assume everything else remaining the same]

• A) Value of the put option increases and that of the call option decreases
• B) Value of the put option decreases and that of the call option increases
• C) Value of both the put option and the call option increases
• D) Value of both the put option and the call option decreases

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Definitions:

Short-Term Notes Payable

Short-duration loans evidenced by promissory notes that a company must pay within a year or within its operating cycle, whichever is longer.