Which One of the Following Statements Is Correct

question 68

Multiple Choice

Which one of the following statements is correct?

• A) The value of a call decreases as the price of the underlying stock increases.
• B) The value of a call increases as the exercise price decreases.
• C) The value of a put increases as the price of the underlying stock increases.
• D) The value of a put decreases as the exercise price increases.
• E) The intrinsic value of a put must be zero on the expiration date.

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