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

---

Definitions:

Time Expression

Phrases or terms used to indicate a specific period during which an event occurs or is scheduled to take place.

Maturity Dates

The specific dates on which a financial instrument such as a bond, loan, or fixed income instrument becomes due and is to be paid off.

95-Day Note

A financial instrument specifying repayment of a loan or debt within 95 days.

5-Month Note

A short-term financial instrument that matures or is due for payment in five months.