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162
2.When the strike price increases with all else remaining the same, which of the following is true?
A.Both calls and puts increase in value
B.Both calls and puts decrease in value
C.Calls increase in value while puts decrease in value
D.Puts increase in value while calls decrease in value
A.Both calls and puts increase in value
B.Both calls and puts decrease in value
C.Calls increase in value while puts decrease in value
D.Puts increase in value while calls decrease in value
Answer: D
Strike price increases cause the values of puts to increase and the values of calls to decline.
Strike price increases cause the values of puts to increase and the values of calls to decline.
Flashcard info:
Author: CoboCards-User
Main topic: Finance & Investment
Topic: Derivatives
Published: 27.10.2015