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The Value of a Listed Put Option on a Share

Question 2

Multiple Choice

The value of a listed put option on a share is lower when ________.
I. the exercise price is higher
II. the contract approaches maturity
III. the share decreases in value
IV. a share split occurs


A) II only
B) II and IV only
C) I, II and III only
D) I, II, III and IV

Correct Answer:

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