The Value of a Put Option Increases with All of the Following

question 85

Multiple Choice

The value of a put option increases with all of the following except ________.

• A) stock price
• B) time to maturity
• C) volatility
• D) dividend yield

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Definitions:

Lemons

In the context of economics, refers to products of lower quality that are difficult to distinguish from higher quality products before purchase. In a general context, it's a citrus fruit.

Expected Value

A statistical concept that calculates the average outcome of a random event when the process is repeated many times.

Dipstick

A tool used for measuring the quantity or level of fluid in a reservoir, notably oil in an engine.

Al Crankcase

Aluminium crankcase refers to the housing for the crankshaft in a reciprocating internal combustion engine, made from aluminum.