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Basic Question 1 of 14
In general, when the price of the underlying stock is ______ the price of a put option will ______, and the put owner will benefit.
B. falling; rise
C. rising; rise
D. falling; fall
A. rising; fall
B. falling; rise
C. rising; rise
D. falling; fall
User Contributed Comments 2
| User | Comment |
|---|---|
| aroman21 | And it's not A because....stock go up, put price becomes less likely and goes down... |
| narfey | A would be correct, but the part that says 'and the put owner will benefit' cancel it out. |
I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
identify the factors that determine the value of an option and describe how each factor affects the value of an option
CFA® 2024 Level I Curriculum, Volume 5, Module 8.