If a Share Price Increases, the Price of a Put

question 7

Multiple Choice

If a share price increases, the price of a put option on the share will ________ and the price of a call option on the share will ________.

• A)decrease; decrease
• B)decrease; increase
• C)increase; decrease
• D)increase; increase

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Definitions:

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The relative social, professional, or other standing of someone or something compared to others.

Tone

The attitude or emotional characteristics exhibited through word choice, writing style, or voice, affecting the overall feel conveyed by communication.

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A form of real-time text-based communication between two or more people over the internet or a network, allowing for immediate receipt and response.

Text Messaging

The act of sending brief written messages via mobile devices or computer systems, a common form of digital communication.