Considering a Put Option; If the Price of the Underlying

question 44

Multiple Choice

Considering a put option; if the price of the underlying asset increases:

• A) the value of the put option also increases.
• B) the intrinsic value of the option increases.
• C) the value of the option decreases.
• D) the time value of the option decreases.

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Definitions:

Skeletal Muscle

A type of striated muscle that is attached to the bones of the skeleton and is under voluntary control, responsible for movement.

Abduction

The movement of a limb away from the midline of the body.

Sphincter

A circular muscle constricting an opening.

Origin

The beginning or source of anything; of muscles, the anchor.