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

question 71

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) An decrease in call value and an increase in put value
• D) An decrease in call value and a decrease in put value
• E) An increase in call value and an increase or decrease in put value

---

Definitions:

Aplastic Anemia

A rare blood disorder in which the body's bone marrow doesn't produce enough new blood cells, leading to fatigue and increased risk of infections and bleeding.

Group A B-hemolytic Streptococci

A classification of bacteria, specifically Streptococcus pyogenes, that can cause various infections and illnesses, including strep throat and skin infections.

Corynebacterium Organisms

A genus of bacteria that are gram-positive, rod-shaped, and often found in the environment but can cause diseases in humans, such as diphtheria.

Enteroviruses

A group of viruses that can cause a variety of illnesses, ranging from the common cold to more severe diseases like meningitis.