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Social Science Clinic => Business => Finance => Topic started by: CharlieWard on Apr 25, 2021

Title: If the stock price increases, the price of a put option on that stock ________ and that of a call ...
Post by: CharlieWard on Apr 25, 2021

Question 1

Consider the put with a strike price of $350. What is the time premium (or time value) of the option?
◦ $0
◦ $2.40
◦ $26.60
◦ $29.00

Question 2

If the stock price increases, the price of a put option on that stock ________ and that of a call option ________.
◦ decreases, increases
◦ decreases, decreases
◦ increases, increases
◦ stays the same, increases

Title: If the stock price increases, the price of a put option on that stock ________ and that of a call ...
Post by: tranoy on Apr 25, 2021

Answer 1

$2.40

Answer 2

decreases, increases