The Option Price Will Change as the Price of the ________

question 13

Multiple Choice

The option price will change as the price of the ________. For a ________, as the price of the underlying asset increases (all other factors constant) , the option price increases. The opposite holds for a ________.

• A) underlying asset changes; put option; call option
• B) underlying asset changes; call option; put option
• C) European option changes; call option; put option
• D) American option changes; put option; call option

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Definitions:

Sales Taxes

Taxes imposed by the government on sales of goods and services, which are typically paid by the consumer at the point of sale.

Payroll Liabilities

Obligations arising from salaries, wages, taxes, and other amounts due to employees.

Federal Income Taxes

Taxes levied by the Internal Revenue Service (IRS) on the annual earnings of individuals, corporations, trusts, and other legal entities.

Time Clock

A device used to track the hours worked by employees, often used to calculate payroll.