An Increase in Which Two of the Following Will Have

question 71

Multiple Choice

An increase in which two of the following will have a negative effect on the value of a put option?
I. risk-free interest rate
II. time to option maturity
III. underlying stock price
IV. option strike price

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

---

Definitions:

Sensory Stimuli

External or internal events that trigger sensory responses and can elicit reactions from an organism.

Brain

The central organ of the human nervous system, responsible for processing sensory information, regulating bodily functions, and enabling cognition and emotional responses.

Spinal Cord

The spinal cord is a long, thin, tubular bundle of nervous tissue and support cells that extends from the brainstem to the lower back, serving as a major conduit for information traveling between the brain and the body.

Axons

Long, slender projections of nerve cells (neurons) that transmit electrical impulses away from the neuron's cell body to other neurons, glands, or muscles.