How Does the Price of a Put Option Respond to a Stock

question 18

Multiple Choice

How does the price of a put option respond to a stock price increase?

• A)Increases
• B)Decreases
• C)Remains the same
• D)Goes to zero

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Definitions:

Damaged

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Lawnmower

A machine equipped with blades for cutting grass on lawns.

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A gift made voluntarily and without consideration during the giver's lifetime, distinct from a testamentary gift made through a will.

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A legal principle referring to actions or decisions made by an individual who expects to die soon, especially in creating or amending a will.