The Value of a Stock Put Option Is Positively Related

question 79

Multiple Choice

The value of a stock put option is positively related to

• A) the time to expiration.
• B) the striking price.
• C) the stock price.
• D) the time to expiration and the striking price.
• E) All of the options are correct.

---

Definitions:

Price

The amount of money expected, required, or given in payment for something.

Delivery

The process of transporting goods from one place to another or the act of transferring the possession of a legal instrument.

Valid Offer

A legally binding proposal made by one party to another to form a contract, requiring clear terms, intention, and communication.

Knowledge

The understanding, awareness, or familiarity gained through education or experience.