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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.

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.