An Increase in Which One of These Will Decrease the Value

question 62

Multiple Choice

An increase in which one of these will decrease the value of a call option and increase the value of a put option?

• A)Stock price
• B)Time to expiration
• C)Stock volatility
• D)Interest rate
• E)Exercise price

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Definitions:

Psychotherapy

A therapeutic treatment primarily using psychological methods to help individuals understand and resolve their problems or modify their behaviors.

Lithium

A chemical element used especially in batteries and, as lithium carbonate, in the treatment of bipolar disorder to manage mood swings.

Antipsychotic Drugs

Medications used to treat psychotic disorders, such as schizophrenia, by altering brain chemistry to improve symptoms.

Tardive Dyskinesia

A neurological disorder characterized by involuntary, repetitive body movements, often resulting from long-term use of certain psychiatric drugs.