Which of the Following Statements Are Correct Concerning Option Values

question 75

Multiple Choice

Which of the following statements are correct concerning option values?
I. The value of a call increases as the price of the underlying stock increases.
II. The value of a call decreases as the exercise price increases.
III. The value of a put increases as the price of the underlying stock increases.
IV. The value of a put decreases as the exercise price increases.

• A) I and III only
• B) II and IV only
• C) I and II only
• D) II and III only
• E) I, II, and IV only

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