According to Put-Call Parity,which of the Following Would Cause the Value

question 9

Multiple Choice

According to put-call parity,which of the following would cause the value of a call option to decrease?

• A)a decrease in the present value of future dividends
• B)a decrease in the present value of the strike price
• C)an increase in the stock price
• D)a decrease in the price of the put
• E)an increase in the price of the put

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Definitions:

Reinforcement

In psychology and organizational behavior, a process by which a certain stimulus or action encourages a particular behavior, making it more likely to occur in the future.

Compa-Ratio

A metric used in human resource management to compare the salary of an individual to the midpoint of a salary range for their position or job classification.

Pay Grade

A step or level within an organization's pay structure that determines the range of pay rates for employees based on the complexity, responsibility, and skills needed for their jobs.

Midpoint

In human resources, it often refers to the middle value in a salary range for a particular position, serving as a benchmark for compensation levels.