Put option values ____, while call option values ____ as the relevant stock price rises.A) fall, fallB) fall, riseC) rise, fallD) rise, rise

Question

Brianna Chaffin · Accepted Answer

Final Answer : B, Explanation :  Put option values decrease as the stock price increases because the option becomes less likely to end in the money. Conversely, call option values increase as the stock price rises because the option becomes more likely to end in the money.

Put option values , while call option values as the relevant stock price rises.

A) fall, fall
B) fall, rise
C) rise, fall
D) rise, rise

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