Which of the Following Statements Is NOT True

question 19

Multiple Choice

Which of the following statements is NOT true?

• A)An increase in interest rates decreases the value of a call option.
• B)An increase in volatility increases the value of a call option.
• C)A decrease in volatility decreases the value of a put option.
• D)An increase in the underlying asset's price decreases the value of a put.

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Definitions:

Mnemonic Device

A technique used to improve memory by making information easier to remember, often through the use of patterns, acronyms, or vivid imagery.

Loss of Memory

Refers to the inability to remember information or events that were previously accessible.

Sensation Loss

The reduction or absence of sensory perception in one or more of the senses, such as touch, sight, hearing, taste, or smell.

Declarative Memories

Recollections that are available for conscious retrieval, including information and occurrences.