The ____ the Existing Spot Price Relative to the Strike

question 50

Multiple Choice

The ____ the existing spot price relative to the strike price, the ____ valuable the put options will be.

• A)higher; less
• B)higher; more
• C)lower; less
• D)lower; more

---

Definitions:

Zero-balance Account

A type of bank account that maintains a balance of zero by automatically transferring funds from a master account in an exact amount to cover checks presented.

As-needed Basis

A method or arrangement where resources are utilized or tasks are performed as and when required, rather than on a scheduled or continuous basis.

Cash Management

The process of collecting, managing, and investing a company’s cash and cash equivalents.

Appropriate Level

A suitable or optimal degree or magnitude for a particular situation or parameter, often used in finance and operations.