Considering a Put Option, an Increase in the Strike Price

question 115

Multiple Choice

Considering a put option, an increase in the strike price:

• A) causes the intrinsic value of the option to decrease if it is above zero.
• B) causes the intrinsic value of the option to increase if it is above zero.
• C) causes the value of the option to decrease.
• D) makes the option worthless.

---

Definitions:

Natural Disaster

An event such as a flood, earthquake, or hurricane that causes significant damage or loss of life, resulting from natural processes of the Earth.

Jumpy Anxiety

A state of heightened nervousness and fear that results in sudden, quick reactions to stimuli, often without logical basis.

Survivor Resiliency

The ability of individuals to recover from or adjust easily to misfortune or sustained life stressors.

Political Dissidents

Individuals who actively challenge established doctrines, policies, or institutions, often facing opposition for their views from the government or dominant political groups.