Flores Floral announces a major expansion which causes both the price of its stock and the volatility of the stock price to increase. How will these two reactions affect the value of put options on this stock?

Multiple Choice

Both reactions will decrease the value.

Both reactions will increase the value.

The change in volatility will have no effect while the increased stock price will decrease the value.

The reactions will have offsetting effects on the value.

Neither reaction will affect put option values.