The Premium on an Existing Put Option Should ____ When

question 6

Multiple Choice

The premium on an existing put option should ____ when the underlying stock price increases.

• A) be negative
• B) decline
• C) increase
• D) be unaffected
• E) A and B

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Definitions:

Kidneys

Vital organs responsible for filtering waste products from the blood and excreting them in urine, regulating electrolyte levels, and managing blood pressure.

Muscle

A tissue composed of fibers capable of contracting to produce movement in parts of the body.

Thromboxane

A lipid molecule that plays a role in the clotting of blood and constriction of blood vessels, contributing to the regulation of blood flow.

Platelet Aggregation

is the clumping together of platelets in the blood, contributing to the formation of a blood clot in response to vascular injury.