The price of a stock put option is __________ correlated with the stock price and __________ correlated with the strike price.
A)positively; positively
B)negatively; positively
C)negatively; negatively
D)positively; negatively

Question

Quizplus · Accepted Answer

The price of a stock put option is negatively correlated with the stock price, as the put option becomes more valuable as the stock price decreases. It is positively correlated with the strike price, as a higher strike price results in a more valuable put option.

The Price of a Stock Put Option Is __________ Correlated