Which One of the Following Will Increase the Value of a Put

question 79

Multiple Choice

Which one of the following will increase the value of a put option?

• A) a decrease in the exercise price
• B) a decrease in time to expiration of the put
• C) an increase in the volatility of the underlying stock
• D) an increase in stock price

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Definitions:

Gold Exchange Standard

A monetary system in which currencies are valued in terms of a specified amount of gold, and governments agree to exchange currency for gold at the set price.

Dollar Depreciation

A decrease in the value of the U.S. dollar relative to other currencies in the international exchange markets.

Japanese Yen

The official currency of Japan, symbolized as ¥ and known in the forex markets as JPY.

Mexican Peso

The Mexican Peso is the official currency of Mexico, represented by the symbol $ or MX$ to distinguish it from other dollar-denominated currencies.