Other things equal,the price of a stock put option is positively correlated with the following factors
A)the stock price.
B)the time to expiration.
C)the stock volatility.
D)the exercise price.
E)B,C,and D.

Question

Quizplus · Accepted Answer

The price of a stock put option is positively correlated with the time to expiration, stock volatility, and exercise price. This means that as any of these factors increase, the price of the put option will also increase. However, the stock price itself has an inverse correlation with the price of a put option, meaning that as the stock price increases, the price of the put option will decrease. Therefore, the correct answer is E, which includes all of the factors except for the stock price.

Other Things Equal,the Price of a Stock Put Option Is