Other Things Equal, the Price of a Stock Put Option

question 87

Multiple Choice

Other things equal, the price of a stock put option is positively correlated with which of the following factors?

• A) The stock price
• B) The time to expiration
• C) The stock volatility
• D) The exercise price
• E) The time to expiration, stock volatility, and exercise price

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Definitions:

Check Register

A record maintained by account holders to track their checks, deposits, and current balance.

Writing Checks

The act of completing a check by specifying the date, payee, and amount, and signing it, to instruct a bank to transfer funds.

Adjusted Cash Balance

The cash balance reported in a company's financial statement, modified for factors like outstanding checks or deposits in transit.

Bank Statement

A monthly or quarterly document provided by a bank summarizing the transactions, including deposits and withdrawals, that occurred in a specific account.