When the Stock Price Increases with All Else Remaining the Same,which

question 15

Multiple Choice

When the stock price increases with all else remaining the same,which of the following is true?

• A) Both calls and puts increase in value
• B) Both calls and puts decrease in value
• C) Calls increase in value while puts decrease in value
• D) Puts increase in value while calls decrease in value

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Definitions:

Ending Balance

The final amount in an account at the end of an accounting period, reflecting all transactions.

Discontinued Operation

A component of a business that has been sold, abandoned, or otherwise disposed of, which is reported separately from continuing operations on financial statements.

Income Statement

A financial report that shows a company's revenues, expenses, and profit over a particular period.

Retirement of a Bond

The repayment of the principal amount of a bond at or before its maturity date, effectively extinguishing the debt.