CFA Practice Question

There are 206 practice questions for this study session.

CFA Practice Question

Which of the following would cause the price of a put option to increase?

I. An increase in the price of the underlying security
II. An increase in the exercise price
III. An increase in the volatility of the underlying security
A. II and III
B. I and III
C. II only

User Contributed Comments 2

User Comment
monteleone Can anyone provide an explanation for this?
dwadd All you can lose is the premium. So if the stock become higly volatile, the chance of making more money goes up, but the risk stay the same.
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