Which of the Following Statements Is True

question 26

Multiple Choice

Which of the following statements is true?

• A)An increase in interest rates increases the value of a put option.
• B)An increase in volatility increases the value of a put option.
• C)A decrease in volatility increases the value of a put option.
• D)A decrease in the underlying asset's price decreases the value of a put.

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Definitions:

Production-oriented

describes an approach focused on the efficiency of producing goods, often at the expense of customer needs and preferences.

Sales-oriented

Focused primarily on achieving sales targets, often through aggressive marketing and promotional strategies, without necessarily prioritizing customer needs.

Market-oriented

A business approach that prioritizes the needs and wants of customers in the creation and selling of products or services.

Relational Orientation

An approach in business and marketing that emphasizes building long-term relationships with customers, focusing on customer satisfaction, loyalty, and engagement.