Which of the Following Will Increase the Value of a Put

question 83

Multiple Choice

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

• A)a decrease in the time to maturity
• B)an increase in the stock price
• C)a decrease in the stock's volatility
• D)a decrease in the exercise price
• E)a decrease in the risk-free rate

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Definitions:

Total Cost

The sum of all costs incurred in the production of goods or services, including fixed and variable costs.

Variable Costs

Costs that change directly in proportion to changes in the level of production or activity within a business.

Fixed Costs

Costs that do not change with the level of output or production, such as rent, salaries, or loan payments.

Fixed Costs

Costs that do not vary with the level of output or production, such as rent, salaries, and loan payments.