Which One of the Following Will Increase the Value of a Put

question 53

Multiple Choice

Which one of the following will increase the value of a put option?

• A)A decrease in the exercise price
• B)A decrease in time to expiration of the put
• C)An increase in the volatility of the underlying share
• D)An increase in share price

---

Definitions:

Operating Cost

Expenses associated with the day-to-day operations of a business, including costs for materials, labor, and overhead.

Useful Life

The estimated period over which a fixed asset is expected to be usable for the purpose it was acquired.

Economic Value

Economic value refers to the worth of a good or service determined by its utility and ability to meet the demand of those willing to pay for it.

Operating Cost

The expenses associated with the day-to-day operations of a business, including costs for materials, labor, and overhead.