Derivatives

pooja923
Good Student
Posts: 25
Joined: Fri Mar 11, 2016 11:38 am

Derivatives

Postby pooja923 » Mon May 23, 2016 1:42 pm

Which of the following will increase the value of a put option?
    An increase in volatility.
    A decrease in the exercise price.
    A dividend on the underlying asset

edupristine
Finance Junkie
Posts: 722
Joined: Wed Apr 09, 2014 6:28 am

Re: Derivatives

Postby edupristine » Tue May 24, 2016 5:43 am

Hi Pooja

Option 1 is correct.
As the value of put option is increase volatility is increase.
Exercise price is also increase.


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