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Basic Question 0 of 18
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. |

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Learning Outcome Statements
describe common cash flow structures of fixed-income instruments
CFA® 2025 Level I Curriculum, Volume 4, Module 2.