How does the price of a put option respond to the following changes, other things equal? Does the put price go up or down?

a. Stock price increases.

b. Exercise price is increased.

c. Risk-free interest rate increases.

d. Expiration date of the option is extended.

e. Volatility of the stock pike falls.

f. Time passes, so the option's expiration date comes closer.

Answer rating: 100% (QA)

a Stock price increases put price decreases Explanation If the stock price increase then the amount ... View the full answer