The value of a listed put option on a stock is lower when:
I. The exercise price is higher.
II. The contract approaches maturity.
III. The stock decreases in value.
IV. A stock split occurs.
A) II only
B) II and IV only
C) I, II, and III only
D) I, II, III, and IV

Question

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The Answer of The value of a listed put option on a stock is lower when:
I. The exercise price is higher.
II. The contract approaches maturity.
III. The stock decreases in value.
IV. A stock split occurs.
A) II only
B) II and IV only
C) I, II, and III only
D) I, II, III, and IV

The Value of a Listed Put Option on a Stock