An Increase in Which Two of the Following Will Have

question 71

Multiple Choice

An increase in which two of the following will have a negative effect on the value of a put option?
I. risk-free interest rate
II. time to option maturity
III. underlying stock price
IV. option strike price

• A)I and II only
• B)I and III only
• C)II and III only
• D)II and IV only
• E)III and IV only

---

Definitions:

Free Exercise Clause

A provision in the First Amendment of the U.S. Constitution that guarantees individuals the right to practice their religion freely, without government interference.

First Amendment

The First Amendment is part of the United States Constitution, protecting freedoms concerning religion, expression, assembly, and the right to petition.

Nuncupative Wills

Wills that are made orally in front of witnesses, usually under circumstances where a traditional written will cannot be executed.

Real Property

The ground and everything permanently attached to it including land, buildings, and growing trees and shrubs; the air space above the land is also included.