Which of the Following Will NOT Increase the Value of a Put

question 86

Multiple Choice

Which of the following will NOT increase the value of a put option?

• A)an increase in the time to maturity
• B)a decrease in the share price
• C)an increase in the exercise price
• D)a decrease in the share's volatility

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Definitions:

Insolvent Debtor

An individual or organization that cannot pay their debts as they come due, often leading to bankruptcy proceedings.

Student Loans

Financial loans provided to students to help cover the cost of higher education, which typically must be repaid after graduation.

Unsecured Creditors

Creditors who have no specific claim over the assets of a debtor in case of default, placing them lower in priority for repayment.

Bankrupt

A person who has made an assignment in bankruptcy or been forced into bankruptcy through a court order obtained by a creditor, and who has not been discharged from bankruptcy.