The value of a stock put option is positively related to the following factors except
A)the time to expiration.
B)the striking price.
C)the stock price.
D)all of the above.
E)none of the above.

Question

Quizplus · Accepted Answer

The value of a stock put option is negatively related to the stock price. This means that as the stock price decreases, the value of the put option increases. Therefore, option C, which suggests that the value of the put option is positively related to the stock price, is incorrect. The other options (A and B) are positively related to the value of the put option.

The Value of a Stock Put Option Is Positively Related