Which one of these will increase both the value of a call and the value of a put?

Question

Quizplus · Accepted Answer

An increase in stock volatility will increase both the value of a call and the value of a put, as both options will have a higher chance of being in the money. A decrease in the exercise price and an increase in the stock price will increase the value of a call and decrease the value of a put. A decrease in the interest rate will increase the value of a call and decrease the value of a put. A decrease in time to expiration will decrease the value of both a call and a put. Therefore, only D is the correct answer.

Which One of These Will Increase Both the Value of a Call