Which of the following will increase in price as the value of the underlying asset decreases in price,from the option holder's perspective?

Question

Quizplus · Accepted Answer

A put option gives the holder the right, but not the obligation, to sell the underlying asset at a predetermined price, known as the strike price. As the value of the underlying asset decreases, the holder of a put option can sell the asset at the higher strike price, resulting in a profit. Therefore, from the option holder's perspective, the price of a put option will increase as the value of the underlying asset decreases.

Which of the Following Will Increase in Price as the Value