The Value of a Listed Put Option on a Share

question 43

Multiple Choice

The value of a listed put option on a share is lower when ________.
I. the exercise price is higher
II. the contract approaches maturity
III. the share decreases in value
IV. a share split occurs

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

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Definitions:

Buzzing Sound

A continuous, low-pitched sound resembling the noise made by insects or electrical devices.

Stroke

A medical condition caused by the interruption of blood supply to a part of the brain, leading to brain damage and possible loss of function.

Temporal Lobe

The temporal lobe is a region of the cerebral cortex that is involved in processing auditory information and is also important for the encoding of memory.

Occipital Lobes

Located at the back of the head, this brain region is in charge of handling visual information.