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Basic Question 0 of 2
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. |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
describe uses of private business valuation and explain applications of greatest concern to financial analysts;
CFA® 2025 Level II Curriculum, Volume 4, Module 25.