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:

Durbin-Watson Test

A statistical procedure aimed at discovering the presence of autocorrelation at the first lag within the residuals of a regression analysis.

Autocorrelation

A characteristic of data in which sequential measurements or values in a time series are correlated with each other.

Independent Variables

Variables in an experiment or regression that are manipulated or categorized to determine their effect on dependent variables.

Multiple Regression Model

A statistical technique that models the relationship between a single dependent variable and two or more independent variables, allowing for predictions of the dependent from the independents.