Other Things Equal,the Price of a Stock Put Option Is

question 36

Multiple Choice

Other things equal,the price of a stock put option is positively correlated with the following factors except

• A)the stock price.
• B)the time to expiration.
• C)the stock volatility.
• D)the exercise price.
• E)none of the above.

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Definitions:

Incremental Value

The additional value created by a particular decision, project, or action over what would have occurred without it.

Merger Premium Per Share

The extra amount paid over the market price per share when one company acquires another.

Market Price

The active market price for exchanging assets or services between parties.

Equity-Financed

Refers to the method of funding a company or its operations through the sale of shareholder equity rather than debt.