Derivatives Q112
0. Which of the following will most likely cause a European put option to be worth less?
- Option : B
- Explanation : A decrease in the risk free rate will cause a put option to be worth more. A decrease in time to maturity will generally cause a put option to be worth less. A decrease in the price of the underlying will cause the put option price to increase. The best option is B.
*/?>
*/?>
*/?>
*/?>