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:

Gay

A term referring to a person who is emotionally, romantically, or sexually attracted to individuals of the same sex.

Married

A legally or formally recognized union of two people as partners in a personal relationship, typically signifying a commitment to a shared life.

Partnered

Having established a partnership or being in a relationship where individuals collaborate or support each other, often used in the context of romantic or business relationships.

Late Adulthood

denotes the final stage of the human life span, typically considered to start around the age of 65, characterized by both physical and cognitive changes.