An Increase in Which Two of the Following Will Have

question 71

Multiple Choice

An increase in which two of the following will have a negative effect on the value of a put option?
I. risk-free interest rate
II. time to option maturity
III. underlying stock price
IV. option strike price

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

---

Definitions:

Competing Messages

The existence of multiple messages vying for the attention of the same audience, often leading to noise or confusion in communication efforts.

Consumer Attention

The focus given by consumers to marketing messages and products, crucial for successful advertising.

Marketing Communication

A variety of techniques and methods used by companies to convey their brand message, promote products, and engage with customers.

Sender

The entity or individual that initiates a message or parcel to be delivered to a receiver.