Which of the Following Will NOT Increase the Value of a Put

question 40

Multiple Choice

Which of the following will NOT increase the value of a put option?

• A)An increase in the time to maturity
• B)A decrease in the stock price
• C)A decrease in the stock's volatility
• D)An increase in the exercise price

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Definitions:

Operating Income

The profit produced from a company's regular business operations, excluding non-operating income and expenses like interest and taxes.

Year 1

Typically, refers to the first year in a given context, such as the first year of operations, first fiscal year, or first year of data collection.

Operating Income

The profit earned from a firm's normal core business operations, calculated before the deduction of interest and taxes.

Fixed Manufacturing Overhead

Costs associated with production that do not vary with the level of output, such as salaries of managers and depreciation of factory equipment.