Which of the Following Will Result from a Decrease in an Option's

question 77

Multiple Choice

Which of the following will result from a decrease in an option's strike price?
I. increase in call option price
II. decrease in call option price
III. increase in put option price
IV. decrease in put option price

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

---

Definitions:

Fovea

A small depression in the retina of the eye where visual acuity is highest due to the concentration of cones.

Cones

Photoreceptor cells in the retina of the eye responsible for color vision and functioning best in relatively bright light.

Rods

Photoreceptor cells in the retina of the eye that are sensitive to low light levels and contribute to black-and-white vision.

Trichromatic Theory

The theory of color vision suggesting that three types of cones in the retina each make a maximal chemical response to one of three colors—blue, green, or red.