Which of the Following Statements Are Correct Concerning Option Values,all

question 1

Multiple Choice

Which of the following statements are correct concerning option values,all else held constant?
I.The value of an in-the-money 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 an in-the-money 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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