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

question 20

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 price

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Definitions:

Intangible Assets

Long-term assets that are useful in the operations of a business, are not held for sale, and are without physical qualities.

Gross Profit Margin

A financial ratio that shows the percentage of sales revenue remaining after deducting the cost of goods sold from total sales revenue.

Vertical Analysis

A financial statement analysis method that shows the relationship of each component to a total within a single statement, expressed as a percentage.

Cost Of Goods Sold

The direct costs attributable to the production of goods sold by a company, including materials, labor, and overhead expenses.