If the Stock Price Increases, the Price of a Put

question 38

Multiple Choice

If the stock price increases, the price of a put option on that stock __________, and that of a call option __________.

• A) decreases; increases
• B) decreases; decreases
• C) increases; decreases
• D) increases; increases
• E) does not change; does not change

---

Definitions:

Personality Disorders

A category of mental disorders characterized by enduring maladaptive patterns of behavior, cognition, and inner experience, exhibited across many contexts.

Borderline Personality Disorder

A mental health disorder characterized by unstable moods, behavior, and relationships, often resulting in impulsive actions and a poor self-image.

Sexual Excitement

The arousal of sexual desires and readiness for sexual activity, often associated with physical and psychological responses.

Fetishism

A psychological condition where sexual arousal and gratification are linked to nonliving objects or specific, non-genital body parts.