Which one of the following statements is correct?
A) The value of a call decreases as the price of the underlying stock increases.
B) The value of a call increases as the exercise price decreases.
C) The value of a put increases as the price of the underlying stock increases.
D) The value of a put decreases as the exercise price increases.
E) The intrinsic value of a put must be zero on the expiration date.
Correct Answer:
Verified
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Q15: Which one of the following describes the
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