Which of the Following Changes, When Considered Individually, Will Increase

question 62

Multiple Choice

Which of the following changes, when considered individually, will increase the value of a put option?

• A) An increase in the risk-free interest rate
• B) Lower volatility of the price of the underlying asset
• C) A higher strike price
• D) None of the above

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Definitions:

Needs-Hierarchy Theory

A psychological theory proposed by Abraham Maslow that categorizes human needs into five hierarchical levels, from basic physiological needs to self-actualization.

Gratified

Having given pleasure or satisfaction; in psychological terms, it often relates to the fulfillment of a desire or need.

Hereditary Component

The portion of an individual's traits or characteristics attributed to genetic inheritance from their biological parents.

Physiological Needs

Fundamental human requirements for sustaining life, including air, water, food, shelter, and sleep, critical for survival.