Other things equal, the price of a stock put option is negatively correlated with which of the following factors?
A) The stock price
B) The time to expiration
C) The stock volatility
D) The exercise price
E) The time to expiration, stock volatility, and exercise price

Question

Quizplus · Accepted Answer

The price of a stock put option is negatively correlated with the stock price because as the stock price increases, the value of the put option decreases, since the option becomes less likely to be exercised profitably.

Other Things Equal, the Price of a Stock Put Option