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:

Minors

Individuals under the age of legal adulthood, which varies by country, typically recognized as under 18 or 21 years old.

Necessary

Something that is essential or required in a particular situation or for achieving a specific outcome.

Necessaries

That which is reasonably necessary for a minor’s proper and suitable maintenance, in view of the income level and social position of the minor’s family.

Reasonable Value

The fair or market value of goods or services, assessed based on what a reasonable buyer would be willing to pay under similar circumstances.