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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Definitions:

Category Series

In charting or data visualization, a group of related data points that belong to a specific classification or segment.

Zoom Group

A set of controls that adjust the magnification level of content in a software application, making it larger or smaller.

View Tab

A tab in software applications that contains options and settings for changing the appearance of the workspace or documents.

Home Tab

The primary tab in many software applications, providing access to common functions and tools.