The Value of a Put Option Is Positively Related To

question 32

Multiple Choice

The value of a put option is positively related to:
I. Exercise price
II. Time to expiration
III. Volatility of the underlying stock price
IV. Risk-free rate

• A) I, II, and III only
• B) II, III, and IV only
• C) I, II, and IV only
• D) IV only

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Definitions:

Witness Stand

A designated spot in a courtroom where a witness gives their testimony during a trial.

Welsh Corgi

A small breed of herding dog originating from Wales, known for its short stature, strong build, and energetic nature.

Direct Examination

The initial questioning of a witness by the party who called the witness to testify, primarily used to present evidence in court.

Breach of Contract

The failure of a party to fulfill the terms as agreed in a contract, which can lead to legal consequences.