Assume the Price of the Underlying Stock Decreases

question 39

Multiple Choice

Assume the price of the underlying stock decreases.How will the values of the options respond to this change?
I.call value decreases
II.call value increases
III.put value decreases
IV.put value increases

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

---

Definitions:

Alimentary Canal

The whole passage along which food passes through the body from mouth to anus, including the esophagus, stomach, and intestines.

Common Hepatic Duct

A duct in the liver that carries bile from the liver and joins with the cystic duct to form the bile duct.

Stratified Squamous Epithelium

A type of tissue composed of multiple layers of flat cells, providing protection in areas subject to abrasion.

Muscular Layer

A layer of muscle tissue in various organs, including the stomach and intestines, responsible for movement and contractions.