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

Name: How does the price of a put option respond to a exercise price increase? A)Increases B)Decreases C)Remains the same D)Goes to zero
Brand: Quizplus
Rating: 4.8 (32 reviews)

Question

Quizplus · Accepted Answer

The price of a put option increases with an increase in the exercise price because it gives the holder the right to sell the underlying asset at a higher price, making the option more valuable.

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