The Value of a Stock Put Option Is Positively Related

question 94

Multiple Choice

The value of a stock put option is positively related to the following factors except

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

---

Definitions:

Book Value

The net value of a company's assets minus its liabilities, representing the equity value of the company from an accounting perspective.

Fair Value

The price at which an asset could be bought or sold or a liability settled, between knowledgeable, willing parties in an arm's length transaction.

Variable Interest Entity

A legal entity in which an investor holds a controlling interest that is not based on the majority of voting rights.

Consolidation

The process of combining financial information from several departments or subsidiaries within a company into a single financial statement.