The Premium on an Existing Put Option Should ____ When

question 58

Multiple Choice

The premium on an existing put option should ____ when there is a reduction in the volatility of the underlying stock.

• A)be negative
• B)decline
• C)increase
• D)be unaffected
• E)be negative AND decline

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Definitions:

Organizational Control

The process through which a company controls and directs its resources to achieve its goals, involving procedures, standards, and policies for regulating performance.

Employee Autonomy

The degree to which employees have the freedom and independence to plan and execute their work tasks.

Holistic

An approach or perspective that emphasizes the importance of understanding the whole system, person, or problem rather than just focusing on its parts.

Information Transmission

The process of conveying data, knowledge, or information from one person, entity, or place to another.