The Value of a Stock Put Option Is Positively Related

question 2

Multiple Choice

The value of a stock put option is positively related to the following factors except

• A)the time to expiration.
• B)the striking price.
• C)the stock price.
• D)All of the options
• E)None of the options

---

Definitions:

Durable Goods

Products or goods that are not consumed or destroyed in use and are expected to last more than three years.

Personal Income

The total earnings received by an individual from all sources, including wages, salaries, bonuses, and investments.

Constant Variance

The condition in which the variance, or spread, of a dataset or error terms in a regression model does not change across the range of the data or predicted values.

Residuals

The differences between observed values and the values predicted by a model, indicating the discrepancy between actual and predicted outcomes.