An increase in __________ will have a negative effect on the price of a put option.
A) The underlying stock price.
B) The time to maturity.
C) The risk-free rate of interest.
D) The dividend yield.
E) The volatility of the underlying stock.

Question

Quizplus · Accepted Answer

An increase in the underlying stock price will decrease the value of a put option, as the option becomes less likely to be exercised profitably.

An Increase in __________ Will Have a Negative Effect on the Price