According to Put-Call Parity, Which of the Following Would Cause

question 20

Multiple Choice

According to put-call parity, which of the following would cause the value of a call option to decrease?

• A) a decrease in the present value of future dividends
• B) a decrease in the present value of the strike price
• C) an increase in the stock price
• D) a decrease in the price of the put price

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Definitions:

Maintenance

The process of preserving something so that it continues to function or remain in good condition.

Four Horsemen

A metaphor describing the four communication styles that, according to Dr. John Gottman, can predict the end of a relationship: criticism, contempt, defensiveness, and stonewalling.

Apocalypse

A term typically referring to the complete final destruction of the world, as described in biblical terms, or any event involving destruction or damage on a catastrophic scale.

Gottman

A psychologist known for his work on marital stability and divorce prediction, employing thorough observational methods to analyze relationships.