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

question 119

Essay

How does the price of a put option respond to the following changes, other things being equal? Does the put price go up or down?
a. Stock price increases.
b. Exercise price increases.
c. Risk-free interest rate increases.
d. Expiration date of the option is extended.
e. Volatility of the stock price falls.
f. Time passes, so the option's expiration date comes closer.


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