Which of the Following Will Result from a Decrease in an Option's

question 77

Multiple Choice

Which of the following will result from a decrease in an option's strike price?
I. increase in call option price
II. decrease in call option price
III. increase in put option price
IV. decrease in put option price

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

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Definitions:

Temperament

An individual's innate predisposition toward certain patterns of behavior and emotional reactions.

Anxious

Feeling or showing worry, nervousness, or unease about something with an uncertain outcome.

Reactive Infants

Babies who show heightened responses to environmental or sensory stimuli, demonstrating increased sensitivity.

Personality

A characteristic way of thinking, feeling, and behaving that is unique to each individual and consistent over time.