The value of a put option increases with all of the following except ________.
A) stock price
B) time to maturity
C) volatility
D) dividend yield

Question

Quizplus · Accepted Answer

The value of a put option typically decreases as the stock price increases, because a put option gives the holder the right to sell the underlying asset at a specified price, and if the market price is higher, the option is less valuable. Increases in time to maturity and volatility generally increase the value of a put option, as does a decrease in dividend yield, since dividends reduce the price of the underlying stock.

The Value of a Put Option Increases with All of the Following