Which of these will decrease the value of a put option? I.An increase in the market value of the underlying asset
II.An increase in the option's strike price
III.A decrease in the market value of the underlying asset
IV.A decrease in the option's strike price
A)I and II only
B)I and IV only
C)II and III only
D)III only
E)IV only

Question

Quizplus · Accepted Answer

An increase in the market value of the underlying asset (I) and a decrease in the option's strike price (IV) both decrease the value of a put option, as a put option gives the holder the right to sell the underlying asset at the strike price.

Which of These Will Decrease the Value of a Put