Which of the Following Statements Are Correct Concerning Option Values

question 75

Multiple Choice

Which of the following statements are correct concerning option values?
I. The value of a call increases as the price of the underlying stock increases.
II. The value of a call decreases as the exercise price increases.
III. The value of a put increases as the price of the underlying stock increases.
IV. The value of a put decreases as the exercise price increases.

• A) I and III only
• B) II and IV only
• C) I and II only
• D) II and III only
• E) I, II, and IV only

---

Definitions:

Without Adult Supervision

Situations or activities that occur in the absence of oversight, guidance, or control by individuals of legal adult age.

Self-Control

The ability to regulate one's emotions, thoughts, and behaviors in the face of temptations and impulses.

Nontraditional Family Structure

Family configurations that differ from the traditional nuclear family, including single-parent families, blended families, and families with same-sex parents.

Grandparent-Headed Families

Family units where grandparents are the primary caretakers of their grandchildren, often due to various family circumstances.