In the Black-Scholes Option Pricing Model, an Increase in Security

question 107

Multiple Choice

In the Black-Scholes option pricing model, an increase in security price (S) will cause

• A) an increase in call value and an increase in put value.
• B) an increase in call value and a decrease in put value.
• C) a decrease in call value and an increase in put value.
• D) a decrease in call value and a decrease in put value.
• E) an increase in call value and an increase or decrease in put value.