The Value of a Put Option Is Negatively Related to The

question 44

Multiple Choice

The value of a put option is negatively related to the:
I.stock price;
II.volatility of the underlying stock price;
III.exercise price

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

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Definitions:

Catastrophic Change

A sudden and widespread disaster that can cause significant environmental, economic, or social upheaval.

Soil Salinization

The accumulation of soluble salts in soil to levels that negatively impact agricultural productivity, often caused by improper irrigation practices.

Compaction

Compaction is the process of applying force to compress soil or material, which increases density and stability, but can affect water infiltration and root growth.

Primary Succession

The process of habitat colonization and ecosystem development in an area where no community previously existed, such as on bare rock.