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Basic Question 1 of 14
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 using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
identify the factors that determine the value of an option and describe how each factor affects the value of an option
CFA® 2026 Level I Curriculum, Volume 5, Module 8.