Which of the Following Statements Are Correct Concerning Option Values

question 18

Multiple Choice

Which of the following statements are correct concerning option values? I.The value of a call increases as the price of the underlying share increases.
II) The value of a call decreases as the exercise price increases.
III) The value of a put increases as the price of the underlying share increases.
IV) The value of a put decreases as the exercise price increases.

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

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Definitions:

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TSE

Transmissible Spongiform Encephalopathies, a group of progressive, invariably fatal, neurological disorders related to prion diseases.

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Vacuum-assisted

A medical procedure or intervention that uses a vacuum device to assist, for example, in the delivery of a baby to manage certain complications.