Question
How does the price of a put option respond to the following changes, other things equal? Does the put price go up or down? a.
How does the price of a put option respond to the following changes, other things equal? Does the put price go up or down?
a. Stock price increases.
b. Exercise price is increased.
c. Risk-free interest rate increases.
d. Expiration date of the option is extended.
e. Volatility of the stock pike falls.
f. Time passes, so the option's expiration date comes closer.
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Business Statistics
Authors: Norean Sharpe, Richard Veaux, Paul Velleman
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