When Dividends Increases with All Else Remaining the Same, Which

question 13

Multiple Choice

When dividends 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:

Insurable Interest

A legal requirement for purchasing insurance, indicating that the person buying the insurance must stand to suffer financial loss or hardship from the damage, loss, or destruction of the property insured, or from the death or injury of the person insured.

Insure Against Damage

The act of securing an insurance policy to protect against financial loss due to physical damage to property or goods.

Insurance

A contract by which the insurer promises to reimburse the insured or a beneficiary in the event that the insured is injured, dies, or sustains damage to property as a result of particular, stated contingencies.

Insurable Interest

A requirement in insurance policies that the policyholder must have a financial interest in the insured item or person that would cause financial loss if damaged or lost.