An increase in which one of these will decrease the value of a call option and increase the value of a put option?

Question

Quizplus · Accepted Answer

An increase in exercise price will decrease the value of a call option and increase the value of a put option. This is because a higher exercise price makes it less likely that the option will be exercised, reducing the potential profit for call option holders and increasing the potential profit for put option holders.

An Increase in Which One of These Will Decrease the Value