Which One of the Following Will Increase the Value of a Put

question 22

Multiple Choice

Which one of the following will increase the value of a put option?

• A) A decrease in the exercise price
• B) A decrease in time to expiration of the put
• C) An increase in the volatility of the underlying stock
• D) An increase in stock price

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Definitions:

Manufacturing Company

A type of business that produces finished goods from raw materials through the use of labor, machinery, tools, and chemical or biological processing or formulation.

Indirect Labor

Labor costs of employees who do not directly work on a product, but whose services are necessary for the production process.

Factory Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor costs, such as utilities, depreciation, and maintenance expenses.

Indirect Materials

Materials used in the production process that cannot be directly linked to a specific product or job, such as lubricants and cleaning supplies.