Multiple Choice
Which one of the following statements is correct?
A) The value of a call option decreases as the time to expiration increases.
B) A decrease in the risk-free rate decreases the value of a put option.
C) Increasing the risk-free rate decreases the value of a call option.
D) The value of a put option increases when the standard deviation of the returns on the underlying stock increase.
E) Increasing the strike price decreases the value of a put option.
Correct Answer:
Verified
Correct Answer:
Verified
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