How does the price of a put option respond to a stock price increase?
A)Increases
B)Decreases
C)Remains the same
D)Goes to zero

Question

Quizplus · Accepted Answer

When the stock price increases, the value of the put option decreases because the holder of the put option has the right to sell the stock at a certain price (strike price), and it becomes less valuable as the current stock price rises. Therefore, the price of the put option would decrease.

How Does the Price of a Put Option Respond to a Stock