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

question 40

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 put price
• B)a decrease in the present value of future dividends
• C)a decrease in the present value of the exercise price
• D)an increase in the share price

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Definitions:

Need for Affiliation

An individual's urge to form connections and maintain positive interpersonal relationships.

Anxiety

A feeling of worry, nervousness, or unease typically about an imminent event or something with an uncertain outcome.

Achievement

The process of accomplishing a task or goal, often of significant difficulty, through effort, skill, or courage.

Achievement Motive

The internal drive or aspiration to accomplish tasks and goals, often leading to success and personal satisfaction.